Gamertell

Financially troubled Midway Games has made sweeping cuts to its workforce. Midway laid off 25 percent of its workforce, or 180 people. Of that number, around 130 are from its Chicago studio and 45 are from its Austin studio which has been closed.

Midway has also suspended development of several games slated to release in 2010 and 2011. The move closes out an economically devastating year for the game maker which is in such bad shape it may be taken off the New York Stock Exchange.

Shareholder Sumner Redstone sold his controlling shares earlier this year to private investor Mark Thomas. Thomas paid a relatively small $100,000 price tag but also took on $70 million of the $90 million in debt facing Midway. The company’s shares have plummeted 93 percent this year, closing at only 19 cents at the end of Tuesday’s trading. Midway execs had hoped a slate of games including TNA Impact,Mortal Kombat vs. DC Universe and Blitz II: The League would pull the company out of its tailspin.

The Mortal Kombat spinoff in particular came as a pleasant surprise, earning generally favorable reviews. Scuttlebutt is that the MK team, at least, will get to stay together.

Read [Joystiq] Also Read [GameDaily]