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Midway Austin confirms "routine" layoffs

Posted Jan 16, 2008 at 6:15AM EST by QJ Staff

Listed in: Wii, PS3, Nintendo DS, Xbox 360, PC Gaming Tags: Area 51, Chicago, Harvey Smith, Microsoft, Sony
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Midway - Image 1


Midway Austin, one of Chicago-based game publisher Midway's largest studios, has confirmed that "routine" layoffs are underway in their lower ranks. This comes after top management personnel were shuffled off to different assignments.

"The reductions were routine and a function of our current project requirements," a Midway rep explained. "There was one minor concentration of layoffs in Austin due to the completion of a project there, but we are still growing our other teams and studios to fulfill our project needs."

Some pundits, however, believe that there may be a story behind what looks like a bit of restructuring on Midway's part. The reassignments of chief financial officer Thomas E. Powell and marketing chief Steve Allison are being tied into the matter as is the case with resigning chairman Kenneth D. Cron.

Cron will be replaced by former board vice-president Shari Redstone. Shari is the daughter of controlling stockholder Summer Redstone.

Midway has encountered a few bumps in its trek through fiscal 2007, seeing its stock fall to 52-week lows and parting ways with BlackSite: Area 51 (Sony PlayStation 3, Microsoft Xbox 360, PC) creative director Harvey Smith. It can be remembered that Smith left Midway on a sour note, badmouthing his last project with the company in public.



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