Atari Reduces Workforce By 20 Percent

Publisher Atari has announced that its board has approved and executed a restructuring of its workforce that will see an overall employee reduction of 20 percent, including a 26 percent reduction in administrative positions. The plan was approved by Atari's board on April 10th, according to a release from the publisher, and was communicated to employees by April 30th. Atari says its overall reductions will be completed by the end of July, with a restructuring charge for fiscal 2008 of $0.8 million to $1.1 million. Gamasutra recently spoke to Atari's vice president of development Robert Stevenson, who expounded on Atari's divestment of internal studios, and said that the company was transitioning to "a little more flexible model, with much lower overhead. You’re seeing a lot of those things actually taking a foothold." Said Atari president and CEO David Pierce, "We expect that today's reorganization will continue to reduce Atari's general and administrative cost. These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value."