New York - Video game publisher Atari, which has been struggling of late and last month saw the departure of founder, chairman and CEO Bruno Bonnell, announced on Wednesday that it will lay off about 20% of its workforce as a cost-saving measure.

The company said most of the layoffs will come from general and administrative functions.

"We expect that today's reorganization will continue to reduce Atari's general and administrative cost," stated Atari president and CEO David Pierce.

"These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value."

The company expects to record a restructuring charge of up to $1.1 million in association with the layoffs.

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