Broderbund Fires 70 Workers to Cut Costs
Broderbund Software Inc. said it fired 70 employees, or 6.4% of its 1,100-person worldwide work force, to cut costs as the expense of marketing its popular “Riven” fantasy game rose more than expected. The education- and entertainment-software maker said the firings will be across the company, but most of the positions will be eliminated at the firm’s Novato headquarters and Petaluma and Mountain View offices, said Eric Winkler, Broderbund senior marketing manager. Broderbund shares fell 12% on Thursday amid concern that the company’s revenue from “Riven” hasn’t translated into earnings and that the company is too dependent on the product. Its earnings for the quarter ended Feb. 28, which were in line with analysts’ expectations, rose 21%. Broderbund shares fell $1.75 to close at $18.88 on Nasdaq.