All of the staff based at Midway's corporate headquarters in Chicago have been handed two months' notice.
According to an SCE filing, the headcount reduction represents approximately 20 percent of Midway's global workforce.
Among those to be let go is chief executive Matt Booty, reports the Chicago Tribune.
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Warner Bros. recently acquired the majority of Midway's US assets in a deal thought to be worth $33 million. That figure has now swelled to $49 million, with the increase due to "considerations such as inventory and accounts receivable," according to GameSpot. Midway will also be writing off $69 million to $76 million in debt.
Warner has reportedly taken on 100 staff from Midway's Chicago development studio.
Midway's Newcastle and San Diego studios were not included in the transaction with Warner. The former is now closed, while the latter is up for sale.
Article supplied by Edge-Online