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Gameplay is to axe 275 jobs as part of a major shake-up it that will save the multiplatform games outfit £12.5 million a year.

The far-reaching restructuring programme hits just about every aspect of the business even though directors at the company have increased their revenue estimate for the six months to January from £40 million to more than £43 million.

From today, the Group is to be divided into two distinct operating divisions: the Technology Division and the Boxed Games Division. Non core businesses and activities will be closed or sold, the company said.

However, while Gameplay focuses on restructuring and its path to profitability, others have described today's announcement as a massacre.

Yesterday, The Register reported that Gameplay was set to make job cuts today. However, even we have been taken aback at the scale of the losses.

The catalogue of cuts made by Gameplay's management makes grim reading since every one is likely to result in job losses.

Gameplay's UK call centre and distribution operations in Leeds will be amalgamated into one site.

It will also close its eight shops, although The Register understands that these may have already been shut down.

Gameplay said there will also be "some rationalisation to reduce the cost base in Germany" and it appears the outfit could pull out of France altogether.

It is to reduce the number of Web sites it runs from 16 to ten. And instead of being run from within their country regions, the sites will be run centrally.

Oh, and 54 jobs will go at its head office in London.

In a statement, Mark Strachan, Chairman of Gameplay, said: "This is a broad and decisive restructuring of the business with the single aim of bringing forward the point at which the Group is profitable."

Mr Strachan was unavailable for comment when The Register called Gameplay this morning.

In December Gameplay shed 20 jobs and lost its MD, Tim Coles. ®

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