Midway is set to lay off 25 percent of it’s workforce, close their Austin studio and cease development on multiple unannounced titles.

Earlier this month, Midway Games lost its highest-profile supporter when media mogul Sumner Redstone ditched his majority stake in the publisher for just $100,000. That triggered change-of-ownership clauses in the company’s loans, allowing creditors to demand repayment of $150 million within 30 days.

While it’s still unclear how Midway (whose total assets amounted to less than $168 million as of September 30) will pay that debt, the publisher today instituted an array of cost-cutting measures to keep afloat. To start, the company will lay off 25 percent of its global workforce, roughly 180 full-time employees. Additionally, Midway plans to shut down its Austin, Texas studio entirely and has suspended development on multiple unannounced “non-core” games previously scheduled for release in 2010 and 2011.

I guess we won’t be seeing Mortal Kombat vs Tigerprince Radio Universe after all…..