As part of a major shake-up, the FlatOut publisher said it is planning to implement a number of organizational changes designed to “maximize efficiencies within the company, eliminate certain unprofitable operations, and better position the company for growth”.
Most job cuts will come from the sale of Razorworks, which Empire acquired in 2000, and total headcount reduction is expected to deliver savings of around $3 million per year.
The company said it is currently in negotiations with potential acquirers and is hopeful of completing a deal in the coming weeks.
The move will not involve the sale of any intellectual property or affect current project development, said Empire, which will continue to use outside studios for game development.
A reorganization of Empire's executive management team will also be carried out through certain promotions, while the firm’s headquarters will be relocated to Muswell Hill, 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.”