Midway to Cut Costs by Cutting Workforce

Facing a troubled economy and disgruntled investors coming to collect $240 million worth of debt, video game publisher Midway is looking to cut the fat by cutting it’s payroll: CEO Matt Booty has announced plans to ax some 25% of it’s workforce and cancel several unannounced games.

“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,” he said in an official statement.

Matt Booty was confirmed as Midway President and CEO last October. He had been serving as interim president and CEO since April, when former CEO Micheal Zucker was forced to step down following a $97.4 million dollar loss reported by the company. At the time, Booty pledged to continue cutting costs and consolidating management in an effort to turn the company’s slipping economic performance around.

The Midway location in Austin will be closed completely, while locations in Chicago and San Diego will see layoffs. All in all, around 180 people are expected to be put out of work.

A Midway insider (speaking on condition of anonymity) had this to say about the culling of their workforce: “I think they’re aware that they’re letting go serious talent, but it is literally an issue of making payroll in the short term - they could let some go or just shut down entirely. It’s not about planning to survive, it’s about surviving long enough to make a plan.”

He also added that it wasn’t just their talent; a lot of managers were being let go too, including “people I never thought they’d let go in a million years.”

Mortal Kombat is, apparently, the one IP they are counting on to save them, though outside funding is being sought for some other currently-deactivated projects. Still, even the optimists still employed at Midway are updating their resumes and anticipating the worst, come January.