Update: Layoffs Continue to Beleaguer Remaining Midway Staff

Another wave of layoffs is hitting Midway's Chicago studio today, according to a reliable source.

Today's layoffs are said to cut deepest into the ailing company's product development and marketing team, though we're told all departments will feel a bit of the cuts. We are told that people who were laid off were called last night and told not to come in. The rumor places total lay offs as high as 160 people, though that appears to be an estimate.

This latest rumor comes a bit more than a month after 20 to 30 people were let go from Midway's Chicago office. This summer the company laid off 90 from their Austin studio. The news shouldn't be too surprising to those following the developer's apparent death spiral. Last week Variety uncovered SEC filings which showed that Midway is 50 days away from declaring bankruptcy.

It's never a good time to be laid off, but making it two weeks before Christmas certainly doesn't help. We've emailed Midway for comment and will update as soon as we hear confirmation, clarification or denial.

Update: The rumors are true.