SCi to cut jobs, cans 14 projects

By Games Industry.biz Published 29 February, 2008

UK production jazz moved to Montreal.

SCi, parent company of Tomb Raider publisher Eidos, has said that is plans to cut jobs as part of a radical restructuring plan, GamesIndustry.biz reports.

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.

"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," commented Phil Rogers, CEO of the company.

"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," he added.

The company plans to switch from a centrally controlled development and publishing model to a studio-lead business focusing on its core products - Tomb Raider, Hitman, Championship Manager and Deus Ex.

New media and casual gaming will be fused under the Eidos Play brand, and the group will move its production services - which includes localisation and QA - from London to Montreal to take advantage of the lower cost environment.

The firm says it intends to cut annual operating costs by GBP 14 million by the end of June 2008 at a one off cost of GBP 7 million.

"Our quality has slipped below acceptable standards and, through disappointing game development and working within an ineffective operating structure, we are failing to realise the commercial return our creative ability and our shareholders demand," said the company. "Our infrastructure is too big and expensive for the scale of the business."

SCi also indicated that it would consider any acquisition offers for the company, although it is not actively seeking offers.

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Comments (20) Latest comment 4 years ago

Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!

  • Blerk #1 4 years ago

    Ouch!

    Those are some pretty bad cuts. Good luck to the staff. :-/

  • Tyronne #2 4 years ago

    vision and excitement for the future eh..and exactly which window can this be seen from at the local job center ?

  • zedzee #3 4 years ago

    OK, so what can we cut from the project roadmap?

    How about all those PS3 ports of the XBox360 games?

    Oh, that's a brilliant idea! Good thinking!

    Great, any other business?

    [silence in the board meeting]

    Right then, I hereby conclude this meeting. Thank you all for attending and your big fat bonuses are in the post.

  • zoidberg #4 4 years ago

    14 projects!? just how many do they have ?!

    or does that include pre-production idea-tossing pseudo-projects?

  • tripitaka #5 4 years ago

    Well looks like I need to find a new job :(

  • jebus #6 4 years ago

    The most worrying thing (apart from the job loses) is that they are moving to Canada. When will the British government realise that the UK games industry is getting totally screwed over by the tax breaks afforded to companies in Canada.

    Idiots.

  • jellyhead #7 4 years ago

    This has been a long time coming sadly. ;_;
    My mate sold his shares for £5.17 in August, they're now worth 33p. Why didn't they can these projects back when it would have made a difference to the company and more jobs could have been saved?
    It's a shame.

  • FixedInfinity #8 4 years ago

    Luckily I quite like the cold...

  • Jigglybean #9 4 years ago

    Sorry to hear this. I started out at SCi - before buying Eidos, it was a fun place to work. Good luck to all the staff. We are looking for QA, Artists, community staff. Ping me a private PM if any of you are interested. Based in the midlands. Oh and i am not an agency! lol

  • lordYaffle #10 4 years ago

    Was a good company to work for, spent 3 years in the QA department.

    Best wishes go out to my friends who lost their jobs.

  • aldo_14 #11 4 years ago

    The most worrying thing (apart from the job loses) is that they are moving to Canada. When will the British government realise that the UK games industry is getting totally screwed over by the tax breaks afforded to companies in Canada.

    They do - their response is to launch a long, convoluted and ultimately-to-fail complaint with the WTO. Y'know, rather than make a sensible economic investment in an industry which the UK have long been pioneers in.

    (I wonder if, in their infinite stupidity, the government are worried about the likes of the Daily Mail highlighting any financial support for the gaming industry as 'helping violent killing simulators be built' or some other nonsensical bullplop)

  • barchetta #12 4 years ago

    Going by reviews/sales of it's latest game this rumour may have some foundation...

    http://ww w.developmag.com/news/29387/Piv...

  • MrChuckles #13 4 years ago

    Phew, went for a job interview there last year, luckily it wasn't my thang.

  • spadge #14 4 years ago

    jebus, when all the doors are closed and there's cobwebs on the keyboards.

  • Megapocalypse #15 4 years ago

    Spent 3/5 years in QA with Eidos. A lot of good people there. Those are some heavy cuts. :(

  • Jigglybean #16 4 years ago

    SCi also indicated that it would consider any acquisition offers for the company, although it is not actively seeking offers come get us EA?

  • specimen #17 4 years ago

    I spent a few years in the QA dept in Southampton and London. Not sure who still works there nowadays but I wish them all the best of luck. I'm actually surprised this hadn't happened already as there was always talk of job cuts when I was there. Gutted.. I expect most people thought getting rid of Bill and Jane would have saved them their jobs.

  • Clive_Dunn #18 4 years ago

    Thoughts to the staff, must be a rough time for them.

    Get the feeling this is too little, too late though.

  • CaptianScarlet #19 4 years ago

    Also, pity the poor small scale development houses that suddenly find their projects canceled and have to shut their doors. There are ripples from this that may affect hundreds more jobs.

  • OllyJ #20 4 years ago

    Sorry to hear this bad news.

    I work at a dev/publisher in the Midlands so if I can help then please drop a mail to anyone you know who is affected and i'll at the very least pass details on.