Midway Lays Off 25% of Workforce, Expects $21.7 Million Fourth-Quarter Charge

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MidwayIn a filing with the U.S. Securities and Exchange Commission, Midway confirmed that it will significantly cut its staff and will incur around $20 million of costs related to the company's financial position and change of control.
To cut costs, Midway has closed its Austin, Texas studio, and suspended development of "several of its non-core prototype games." As a result, the company is laying off around 180 full-time employees (around 25% of the company's workforce). Midway expects to incur a charge of $1.6 million in connection with these layoffs.

FI previously reported on issues relating to Midway's debt following the Midway's change in control. As we expected, the company has a plan to deal with the change of control triggers in its debt agreements. Midway expects to incur a total of $20.1 million of costs related to settling these issues.

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This page contains a single entry by Editor published on December 16, 2008 6:29 PM.

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