Sierra On-Line, a studio of Vivendi Universal Publishing (VU Publishing), announced today a strategic reorganization that will improve operating efficiencies through the consolidation of non-developmental functions. Within the new organization, Sierra will focus on product development and brand management and more closely mirror the operating structures of other VU Publishing studios Blizzard Entertainment and Universal Interactive Studios.

"This reorganization creates a more efficient operating model," said Sierra President Michael Ryder. "It also allows Sierra to focus on what we do best -- creating and growing some of the most successful and enduring brands in the business."

Key elements of the Sierra reorganization include:

Non-Developmental Functions. A number of key functional areas within Sierra’s Bellevue, WA headquarters will be consolidated and managed as corporate functions within VU Interactive Publishing. These moves will improve efficiency and allow VU Interactive Publishing to maximize operating synergies across studios.

Product Development. There will be several key changes within Sierra’s internal and external studios. Dynamix, based in Eugene, OR, will be closed and the development of key franchises including Tribes will move to Sierra’s Bellevue studio. The Bellevue studio will remain central to the new organization, and will, in addition to Tribes, be responsible for the best-selling SWAT and Hoyle franchises. Concord, MA-based Papyrus, which has a strong heritage in the development of racing games, will continue as a key studio, maintaining responsibility for the NASCAR franchise. Cambridge, MA-based Impressions, will remain a key development studio, responsible for a number of pre-eminent titles including the Ancient City Building series and Lords of the Realm.

Sierra Home. The Sierra Home division, which produces a range of cooking, gardening, genealogy, and publishing titles, will concentrate on the development of its print business. All other product categories will be divested. VU Interactive Publishing will retain Sierra’s best-selling Print Artist franchises, which will continue as an important part of the Sierra portfolio and be managed out of the Los Angeles office.

In total, 97 positions will be eliminated with the closing of Dynamix, and another 148 will be eliminated in Sierra’s Bellevue’s office. Approximately 20 positions will be transferred to VU Interactive Publishing’s Los Angeles headquarters.

"While any reorganization involving staff reductions is difficult, there is no doubt that this is the right thing to do for the business," said Sierra President Michael Ryder. "We are now in a strong position to forge ahead with our new and established franchises."