Beleaguered Atari takes axe to workforce

Atari, the troubled video games publisher, is slashing its workforce by 20% over the next three months as part of a corporate restructure. The biggest cuts at the games company will be in its administrative workforce, which will be reduced by 26%.

The restructuring is expected to cost the company up to $1.1m (£0.5m) and comes eight months after the US publisher received a delisting notification from Nasdaq because it had failed to maintain the minimum $1 share price.

Last September the company appointed David Pierce as president and chief executive after Jim Caparro left from the role a year earlier.

Pierce, who was brought in to turn around the ailing company, joined Atari with 20 years’ senior management experience at entertainment companies such as Universal Pictures, MGM, Sony Pictures and Sony Music.

The company produces Microsoft, Nintendo and Sony compatible games, such as Alone in the Dark, V-Rally and Test Drive, which are sold in more than 60 countries.

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