Software
Midway Games to Cut 25% of Jobs
The Associated Press
12/16/08 - 02:06 PM EST
CHICAGO -- Midway Games (MWY Quote), maker of the popular "Mortal Kombat" video game series, will cut its head count by 180 people, or 25% of its work force, close a studio in Austin, Texas, and halt development of "noncore" games, according to a government filing Tuesday.
Midway expects to take a charge of $1.6 million in the fourth quarter for severance costs. The company said the job cuts will come at its facilities in Chicago and San Diego, in addition to Austin.
Midway Chief Executive Matt Booty said in a statement, "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."
The company posted a widening loss for the third quarter and expects another loss for the three months ending in December.
Billionaire media figure Sumner Redstone and his holding companies sold 80.3 million shares of Midway for less than a penny at a loss of hundreds of millions of dollars, according to securities filings in December.
Midway shares fell 2 cents to 17 cents in midday trading Tuesday, down from a 52-week high of $4.20.