Report: Midway Austin Sees Significant Layoffs
Following last week's executive departures
at Midway, Midway's Austin office (Blacksite: Area 51
) has seen significant layoffs, multiple independent sources have told Gamasutra.
The layoffs occurred late last week following the departure of Midway executives including Chicago studio head Mike Bilder, marketing vice president Mona Hamilton and media relations VP Reilly Brennan.
The level of churn has increased in recent months at Midway, which has struggled with profitability after expensive next-gen technology transitions, and has had some notable sales underperformances -- including Blacksite
These most recent changes have come after similar issues in January, where Midway also admitted
to a "routine reduction" in staff at Midway Austin -- apparently smaller than this round. An earlier round of executive resignations at that time saw the departure
of marketing VP Steve Allison and VP, CFO, and treasurer Thomas Powell.
The company's financials are not much improved in recent quarters -- Midway recently reported a $34.8 million net loss for its second fiscal quarter, with revenues falling 26 percent year over year from $31.8 million to $23.4 million.
But the company, which has moved
key titles Wheelman
and This Is Vegas
into 2009, is still holding out hope that its technology investments -- showcased in games such as Stranglehold
-- will pay off.
Gamasutra has contacted Midway representatives for comments, but had not heard back as of press time. Midway's shares are currently trading at $2.84, significantly below a 52-week high of $6.48.