RealNetworks is consolidating two of its remaining businesses — technology products and media software and services — in a move that will result in cutting 85 jobs, the company announced Tuesday.

RealNetworks is consolidating two of its remaining businesses — technology products and media software and services — in a move that will result in cutting 85 jobs, the company announced Tuesday.

With offices clearing out, Real plans to sublease part of its headquarters overlooking the downtown Seattle waterfront.

The company also pulled its GameHouse studio out of Pioneer Square and into its headquarters office a few weeks ago, an interim move until the planned spinoff of the games business into a separate company later this year.

The layoffs include about 25 percent of Real’s executive ranks, the company said, explaining its “new organizational structure is designed to reduce the spans and layers of management to create greater efficiency, teamwork and customer focus.”

    Most Read Stories

“This reorganization marks a significant milestone in our transformation of RealNetworks,” acting Chief Executive Bob Kimball said in the news release. “Restructuring RealNetworks into functional groups creates a far more efficient organization focused on developing great products that can be delivered through any of our distribution partners.”

Real is also cutting back on its office space at its Seattle headquarters and in Europe and Asia. It plans to take a restructuring charge of $10 million for the quarter ending June 30, including a $7 million loss on excess office space and $3 million for personnel adjustments.

After the cuts, RealNetworks will have 1,365 employees, down from 1,700 before Kimball began a major restructuring of the company in February. That shuffle involved founder Rob Glaser, who stepped down as chief executive.

Even before the current wave of restructuring, which included spinning off music service Rhapsody into a separate company, Real has been whittling its employment with periodic layoffs as its business slowed in recent years. It laid off 130 in December 2008 and 20 in February 2009.

About 75 percent of the latest layoffs are in Seattle.

Real’s stock closed at $3.50 Tuesday, down 3 percent, before the layoffs were announced.

Brier Dudley: 206-515-5687 or bdudley@seattletimes.com