General Magic Inc, the Sunnyvale, California-based provider of speech recognition technology-based communications services, says it will cut 20% of its workforce in a restructuring effort. The job cuts, which primarily affect the administrative and support areas, come as the company intensifies its focus on the internet and looks to cut costs. After all the pink slips are handed out, about 145 staff will remain on the payroll.
A new organizational structure includes an internet services group and a custom solutions group. The ISG will have responsibility for General Magic branded services including myTalk and Portico, and offers hosting services for third-party services such as Excite Voicemail. The CSG, meanwhile, will offer professional services and custom engineering to clients that want to tailor the company’s magicTalk platform for use in their own voice-based applications.
In July, General Magic had indicated that it would aggressively focus on its internet business because it presents a more promising near-term opportunity. In addition, the company says, discussions with potential partners led it to recognize that service providers want the flexibility to tailor use of the magicTalk platform to their needs.
