Midway cuts 25% of global staff
Midway's announced plans to cut 180 staff, or 25 percent of its global workforce.
Its Austin studio is to be closed completely, and "development on several non-core games" has been suspended, the publisher said in a statement.
“The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed,” said company boss, Matt Booty.
“These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions.”
Midway's had a rough time of it recently, being sold for a song, watching its share price crater, facing delisting from the NYSE and even facing imminent bankruptcy.
Still. It's Christmas soon!
To all those caught in the storm: we salute you.
Press release after the break.
CHICAGO--(BUSINESS WIRE)--Midway Games Inc. (NYSE: MWY) today announced that the company is taking significant steps to reduce its cost structure, including a reduction in workforce, the closure of its Austin, TX, studio, and the suspension of development on several non-core games.
The cost-cutting initiatives will involve a reduction in force across multiple disciplines within the company in its Austin, Chicago and San Diego locations. Headcount will be reduced by approximately one quarter of Midway’s global workforce. The suspended non-core projects were previously scheduled to release in 2010 or 2011 and have not yet been made public.
“The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed,” said Matt Booty, president and CEO of Midway. “These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions.”
Additional details on the reduction and the financial impact can be referenced in the report filed today on Form 8-K with the Securities and Exchange Commission.