They'll fire 50 people and still have about the same headcount as the start of the year -- so they overhired and won't have the revenue to pay for their excess employees?
More likely, they over hired in certain skillsets (Flash, maybe?) and plan to hire in others where there's money being made (I would imagine mobile) or other markets (they mention China and Japan).
I don't know PopCap's specific circumstances but I've worked in the video games industry for 18 years and it's routine to do a 'cull' of 'dead wood' in the guise of a 'restructuring/repositioning'.
Part of it is that you hire people that are crap and it's easier to do this than fire them. Part of it is that you've hired people that are good but no longer need and it's easier to do this than pay redundancy.
Again, I don't know what their situation is but you hear about this every six months or so in the industry.
