Quickflix, the Australian streaming-video-on-demand (SVOD) service, is to lay-off 15% of its staff and close its headquarters in Sydney's CBD and another outpost in Auckland.
The company has also revealed this morning that it will slash the salaries of founder and CEO Stephen Langsford and CFO Simon Hodge, as it prepares to raise a further $2m through an equity sale.
In a statement to the ASX this morning, Quickflix said it hopes that the restructuring will result in some savings of $1m, although it will do little to impact the core day-to-day service levels.
It also suggests there is intention to restructure convertible preference shares in the company to equity.
Nine Entertainment is the owner of preference shares in Quickflix, currently valued to $1m which it acquired from US broadcaster and production house HBO.
The US TV network was in part responsible for saving Quickflix from a cash flow crisis in 2012 when it bought 83.3m shares valued at 12c a share. The stake has since been transferred from Nine to Stan, the SVOD service the TV firm owns with Fairfax.
Quickflix has repeatedly restructured its debt payments over the past year. However, it says that it has registered positive earnings before interest and tax for January and fenruary 2016.
Email Nicola at nicolariches@yaffa.com.au.