Posted on April 26, 2008, Chris Warner Bros. Signs Deal with SCi; Eidos Layoffs Abound
SCi has taken a number of cost cutting measures this year, cutting 25% of jobs and canceling 14 projects that had been in development. So it’s good news for the company that SCi announced yesterday that it had sign a $170 million deal with Warner Bros.
But it’s not good if you happen to work at Eidos. 1UP has learned that the entirety of Eidos’ PR, marketing and sales departments have been laid off as part of the deal with Warner Bros.
This isn’t the first time Warner Bros. has stepped in to help SCi manage its debt; in 2006, it bought out 10.3% of SCi’s outstanding debt. That resulted in Warner Bros. getting its hand in the Tomb Raider business, and SCi getting the rights to Batman, Looney Tunes, and some old Hannah Barberra cartoons.
“Today we have significantly strengthened our relationship with Warner Bros. one of the world’s largest media groups, to create an exciting strategic partnership, giving us increased scale in the North American market, to the benefit of all our major franchises,” comments Phil Rogers, CEO of SCi. “The new financing puts us in a clear position to deliver on the strategic business plan which we announced in February with focus on cornerstone studios and core franchises, delivering high-quality, world class games.”
Our best goes off to those affected by the Eidos layoffs. We’ve seen a number of studios close in recent months, and even though there are still many of staffers that will keep their jobs at Eidos, there will undoubtedly be some survivor’s guilt for those who remain.