SCi to cut 25 per cent of jobs, cancels 14 projects

Ouch. SCi to cut 25 per cent of jobs, cancels 14 projects.

Production services to move from London to Montreal as part of radical restructuring

The company plans to operate at a maximum head count of 800, a reduction of 25 per cent, while the board has decided to cancel 14 projects currently under way as they will not generate an acceptable return on investment or are not of sufficient quality.

Tough talk to show investors that the new people mean business, I guess. I wonder how it will work out.

Comments 1

  1. Stitched wrote:

    I guess it makes sense. London is spectacularly expensive to operate in, let alone live there. Bundle that with Quebec’s video game incentives from the government and move is a fait-accompli.

    Head count reduction is usually a stock price reaction. History has shown that a significant drop in price usually precedes a reduction in head count to make quarterly results; as seen many times with EA (ERTS).

    It’s interesting, though, that they decided to cancel the projects entirely, without exploring alternative publishing methods, or downscaling the ideas to the casual market.

    I feel for those that will get laid off; having been on the end of many axes in my career.

    Posted 02 Mar 2008 at 4:22