We've just heard secondhand that Midway has laid off "about" 160 people, mainly in its Chicago studio. This wouldn't be surprising considering its numerous and devastating financial troubles as of late but, just so we're clear: we haven't heard anything official. If what we've heard is true though, the company would be halting development on all titles, restructuring, then resuming on all but one game which will be canned completely. Also, the Mortal Kombat team is reportedly safe.
We'll keep digging for some official comment, and if you'd like to talk to us confidentially you can do it here. In the meantime, if the reports are true, our thoughts are with those that may have to start a job hunt soon.
Update: We've gotten official word now that Midway is laying off 25 percent of its workforce, around 180 people in total. Approximately 130 are from its Chicago studios and 45 from its Austin operation, which has closed. Several non-core, unannounced games will be suspended. "The cost-reduction measures are vital for us to rationalize our operations and provide the resources necessary for our core properties to succeed," said Matt Booty, president and CEO of Midway.