Midway Austin confirms “routine” layoffs

After assigning top-level executives to different assignments, Chicago-based publisher Midway has confirmed what it calls “routine” layoffs in its Austin outpost. Are the two moves tied to each other, or is this part of the company’s normal procedures? See details in the full article and decide for yourself.

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.