Silverstar Holdings is to cut staff headcount at publisher Empire Interactive by 30 per cent in order to improve efficiencies and save around USD 3 million per year.
The majority of jobs will go along with the sale of internal development studio Razorworks, which Empire purchased in 2000.
The company also plans to relocate the Empire headquarters and shuffle a number of senior management.
"The changes at Empire mark an important new direction for the company as we head into fiscal 2009," commented Clive Kabatznik, CEO of Silverstar Holdings.
"These significant cost savings and managerial changes, along with our planned fiscal 2009 game line-up, position the company for a strong fiscal 2009."
Empire, publisher of acclaimed racing series FlatOut, will continue to work with external development studios, and has no plans to sell any intellectual property or make changes to current projects.
Silverstar is in talks with a number of potential buyers for Razorworks, and expects a deal to be done within the coming weeks.
The Empire headquarters will be moved to Muswell Hill, London.