Facing questions about its ability to stay in business, Atari ( ATAR) is laying off 20% of its staff in an effort to cut costs.

The video-game publisher did not say how many employees were affected by the cuts in a statement Friday. It also didn't say when the cuts would be effective or if they would target particular parts of the company. On a conference call earlier this month, company officials said they were planning to scale back Atari's internal game studios and development efforts.

A company representative did not return a call seeking comment on the job cuts.

"Today's decisive action will provide us with the flexibility necessary in a changing business environment," said Atari CEO Bruno Bonnell in a statement. "Adjusting our cost structure is a significant first step and demonstrates our commitment to restoring shareholder value."

Majority-owned by France-based Infogrames, this latest incarnation of Atari has been struggling for much of the last two years. Amid shrinking sales and a declining bottom line, the company has shuttered or sold off three development studios over the last year. Meanwhile, it saw the departure of its previous CEO after less than a year on the job and, more recently, the resignation of its CFO.

Last month, the company warned that as a result of its financial results falling short of its obligations, its lender had cut off its credit line. As a result, the company cautioned investors earlier this month that there was significant doubt about whether it could continue as a going concern.

Atari had 492 employees at the end of its last fiscal year in March 2005. But that number included employees in studios that it has since shuttered.

Best known for its video games and game machines of the early 1980s, Atari has gone through several incarnations since then, including as a division of Hasbro ( HAS - Get Report).

In after-hours trading following the layoff announcement, shares of Atari were up 3 cents, or about 3%, to 89 cents. The stock closed regular trading on Friday off 3 cents, or 3%, to 86 cents.