Midway Games is planning to lay off 25% of their staff, including shutting down the Austin, Texas studio. That will result in 44 full-time employees losing their jobs. The company will also be letting go employees from their offices in Chicago and San Diego.
The company has suspended almost all of their projects, with the exception of Wheelman and This is Vegas. According to sources in TNA, Midway has informed them that the Impact II release would not be affected by the internal Midway changes.
Midway's stock has fallen 93% over the last year, and they have been warned by the New York Stock Exchange that they may be de-listed due to poor trading. Sumner Redstone, Midway's controlling shareholder, recently sold his 87% stake in the company to private investor Mark Thomas. Thomas paid $100,000 and agreed to absorb $70 million of a $90 million loan that Redstone owed to his other company (National Amusements).
While Midway is in more trouble than other companies, they are not alone in trying to cut costs. Recently both THQ and Electronic Arts have been looking into cost cutting measures.
They were given 50 days to make back a certain figure, I think that was about 2 weeks ago now. Goodbye Midway! I wonder who will but its IP's?
