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Midway lays off staff at Austin studio

Following the cancellation of an unannounced title the publisher cuts staff for "health" of company

Midway has laid off 80 staff members at its Austin studio after the company canned the unannounced game Career Criminal, which was still in development.

Midway confirmed rumours of a mass staff cut, saying that the cancellation of an "as-yet-unannounced" project has led to a "reduction in force of a portion of the affected development team," according to Gamasutra.

This was later confirmed by a leaked letter to employees, from interim CEO and president Matt Booty, assuring them that the studio would remain open and active, but that cutting back staff was required for the "health and future" of the company, according to Kotaku.

"Today we are cancelling the Career Criminal project in our Austin studio and there will be a reduction in headcount of about 80 people," he said. "First and foremost, I want to emphasise that we are not closing the Austin studio and that the studio will continue to be an important part of our product development organization."

"Although we are cancelling a major title, the other projects in development at the studio will continue, and we will continue to invest in new teams and new people going forward... This was a difficult decision, but it is the right thing to do for the health and future of the company."

This move comes after Midway reported its Q2, 2008 financial results with losses amounting to USD 34.8 million, or USD 0.38 per basic and diluted share.

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