Majesco’s financial woes are no secret. In fact, they’ve been going on for some time, but they’ve gotten to the point where the stock is not only facing being delisted, but the company itself has acknowledged them, stating “we have suffered losses that raise substantial doubt about our ability to continue as a going concern. Accordingly, we are evaluating various alternatives, including reducing operating expenses and personnel costs, securing additional financing for future business activities, and other strategic alternatives including a sale or merger of our company.” When a company doubts their continued existence, the writing is on all the wall.
That writing has today been penned in ink as the downsizing of senior staff has begun. The first casualty comes from their Midnight City indie publishing arm, with VP of Publishing Casey Lynch announcing today that he had been laid off from Midnight City amidst downsizing. Lynch was formerly Editor in Chief of IGN and before that (full disclosure) an Editor for Hardcore Gamer.
Majesco themselves have yet to issue a statement, but with a negative 2.41 EPS and a paltry .68 per share asking price, it seems only a matter of days before it completely becomes defunct.