The company expects to reduce Empire's active headcount by approximately 30 per cent, largely through the sale or disposition of its internal development studio, Razorworks.
MCV sister publication Develop first broke the news that Razorworks was to close a few weeks ago, and the City statement reveals that any sale would include the development team and its physical assets, but will not involve the sale of any intellectual property or affect current project development.
The company states that it is “currently in negotiations” with potential Razorworks acquirers and looks to complete the transaction “in the coming weeks.” The total head count reduction is expected to deliver cash flow savings of approximately $3.0 million per year.
Additional organizational changes include reorganizing Empire's executive management team, as well as the relocation of its headquarters to a modern facility near Muswell Hill, North London.
“The changes at Empire mark an important new direction for the company as we head into fiscal 2009,” said Silverstar Holdings CEO Clive Kabatznik. “These significant cost savings and managerial changes, along with our planned fiscal 2009 game line-up, position the company for a strong fiscal 2009.”