Midway are a company on the edge of financial ruin with spiraling debts and no real income with which to pay them. As a result Midway today announced that they have made 180 members of it's workforce redundant, that may not seem a lot but that accounts for over a quarter of their workforce. Midway have also closed their Austin Studio and have made cuts in both their Chicago and San Diego offices.
As well as losing a quarter of the workforce Midway have also announced that they will be canceling several unannounced games that were due for release in 2010 and 2011, however it is stated these cuts are not to any major projects that they had planned.
Matt Booty, President and CEO of Midway had this to say,
"The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed."
"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."
To add to their money problems as a result of laying off the 180 members of staff Midway will incur a loss of $1.6 million in redundancy package deals.
It is indeed a bad time for Midway. Can they survive this recession?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment