Atari issued a press release earlier this month stating that that are in the process of a workforce reduction of approximately 20%:
Atari Announces General and Administrative Overhead Action Plan
– Reduction of approximately 20% of the total workforce –NEW YORK, May 1, 2007 /PRNewswire-FirstCall via COMTEX News Network/ — Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced a reorganization of its general and administrative functions.
The reorganization plan reduces Atari’s total workforce by approximately 20%, which includes a reduction of administrative workforce of approximately 26%. This plan was approved by the Board of Directors on April 10, 2007 and communication to employees was completed on April 30, 2007. The Company anticipates the workforce reductions to be completed by July 31, 2007 and will record a restructuring charge during fiscal 2008 of approximately $0.8 million to $1.1 million.
“We expect that today’s reorganization will continue to reduce Atari’s general and administrative cost,” stated David Pierce, President and Chief Executive Office of Atari, Inc. “These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value.”
About Atari, Inc.
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company’s 1,000+ titles include hard-core, genre- defining franchises such as Test Drive(R); and mass-market and children’s franchises such Dragon Ball Z(R). Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext – ISIN: FR-0000052573), an interactive games publisher in Europe. For more information, visit http://www.atari.com.
This probably won’t affect much in the way of Dragon Ball stuff… that is, of course, until the company finally falls apart. They have not exactly been putting out the greatest figures the last few months/years, and not too many press releases are all that favorable if you actually read into them. Ah, well. Such is the way of “enhancing shareholder value” in this fantastic capitalist world.