As if the situation over at Eidos parent SCi Entertainment wasn’t already bad enough, the company today said that it expects to cancel 14 in-development projects and layoff nearly 25 percent of its workforce as part of an ambitious restructuring plan.

According to SCi CEO Phil Rogers, the company is moving from a centrally controlled development model to studio-led business similar to EA that focuses on core franchises such as Tomb Raider, Hitman, Championship Manager and Deus Ex.

Following our business review over the last six weeks, we are initiating a clear action plan based on three fundamental strands of activity: a radical change in our structure to a studio-led business, a top to bottom programme of product improvement and efficiency and a considerable cost reduction plan.

Additionally, the company’s production services will be relocated to Montreal as part of the restructuring effort.

SCi Entertainment Group plc

Business review and half-yearly financial report for the six months ended 31 December 2007

COMPANY TO BE RE-STRUCTURED

SCi Entertainment Group plc (’SCi’ ‘the Company’ or the ‘Group’), today
announces a group re-structuring plan following its business review and its
interim results for the six months to 31 December 2007.

The business review led by new Chief Executive, Phil Rogers, has decided on the
following actions:

Fundamental change in business structure:

* SCi’s business structure will be significantly changed from a centrally
controlled development and publishing model to a studio-led business focused
around cornerstone products, such as Tomb Raider, Hitman, Championship
Manager and Deus Ex.
* Creation of Eidos PLAY to fuse together casual and new media resources to
attack growing markets.
* Flexible and efficient approach to distribution.

Product improvement initiatives started:

* Cancellation of 14 projects which the Board considers are unlikely to
generate an acceptable return on investment or are not of appropriate
quality.
* Studios focusing on product innovation and delivery of high quality games.
* Production services to form part of the studio group, relocating to
Montreal from London.

Cost reduction plan:

* New business structure targeted to operate with a maximum of 800 people, a
reduction of 25% from current headcount.
* Annual operating costs to be cut by £14 million by the end of June 2008 at
a one-off cost of £7 million

Phil Rogers, Chief Executive of SCi Entertainment Group said,

‘SCi is in need of immediate change.

‘Following our business review over the last six weeks, we are initiating a
clear action plan based on three fundamental strands of activity: a radical
change in our structure to a studio-led business, a top to bottom programme of
product improvement and efficiency and a considerable cost reduction plan.

‘To get SCi on track we have to act rapidly and effect change quickly. We must
allow the world-class people that we have within the Group to focus on strong,
profitable titles which will create the value our shareholders deserve.

‘I am confident our staff share this vision and excitement for the future, and
determination to build a working environment where our innovation and creativity
can be commercially realised.’

Read more: Midway Shutters Austin Studio, Reduces Workforce By 25 Percent, Eidos Retains Brand Independence In Square Enix Deal, Microsoft To Cut 5,000 Jobs, THQ Confirms Layoffs, Red Faction: Guerilla Delayed, Phil Harrison Resigns