LiveOne cuts additional $5M in costs through AI deployment

LiveOne Inc. (NASDAQ: LVO) announced it has reduced costs by more than $5 million since December through the deployment of Claude AI and other proprietary artificial intelligence initiatives, according to a company press release.

The music and entertainment platform company reduced its workforce from 350 employees to 84, including a reduction of more than 12% in the current quarter. The company also eliminated approximately $14 million in liabilities by repaying $3 million of debt and converting more than $11 million into equity at $7.50 per share.

"We are taking decisive actions to streamline our cost structure and materially strengthen our balance sheet while leveraging AI to operate more efficiently across the platform," stated Robert Ellin, Chairman and CEO of LiveOne.

The debt conversion aligns musicians, podcasters, and key talent as major shareholders while strengthening the company's balance sheet, according to the announcement. The cost reduction initiatives are part of LiveOne's strategy to improve operating leverage and position the company for sustained profitability.

LiveOne operates as a creator-focused music, entertainment and technology platform that delivers content through memberships and live and virtual events. The company's subsidiaries include Slacker, PodcastOne (NASDAQ: PODC), PPVOne, Custom Personalization Solutions, LiveXLive, DayOne Music Publishing, Drumify and Splitmind.

The company's platform is available across multiple devices including iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, and Android TV.

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