Atari 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 its administrative workforce by approximately 26%. The workforce reductions will be completed by July 31, 2007. Atari 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. “These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value.”
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