Reports are coming in that 38 Studios has laid off its entire staff.
Company founder Curt Schilling re-posted a link to new screenshots just four hours ago, as we covered this morning.
Since then, dramatic events have led to many respected members of the games industry being given the sudden news that they are no longer employed.
Also getting notice of redundancy is the staff of Big Huge Games in Baltimore, 38′s development studio. This was confirmed in a Tweet from Big Huge Games Lead World Designer Colin Campbell:
“Big Huge Games was home for my wife and me for our adult lives so far. I’ll miss it terribly, but so proud. Good night and good luck.”
Concerns were high that something dramatic could be underway after Rhode Island TV network WPRI reported on a job fair run by Turbine in Providence Monday that attracted over 300 hopefuls — including several then-current 38 Studios employees. They were understandably evasive regarding their current employer.
According to the terms of their deal with Rhode Island, the state would acquire the rights to Copernicus if the company failed. Analyst Michael Pachter said the studio’s assets would be worth about $20 million, far less than the $75 million loan that 38 Studios secured from the state.
Support from various sections of the games industry — including game companies highlighting job positions — has already been voiced in various media, of course we at GAMEBREAKER share the regret that so many talented professionals find themselves in an awful circumstance today.
We’ll have more updates as this story develops.
UPDATE: WPRI12 reports that the following was the email that announced the layoffs to the staff:
The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.
These layoffs are non-voluntary and non-disciplinary.
This is your official notice of lay off, effective today, Thursday, May 24th, 2012.
UPDATE: 38 Studios and BHG employees have not been paid since April 30. According to a letter received by Kotaku from a former 38 employee:
38 Studios just laid off its entire staff, both Providence and BHG studios are being shuttered.
We have not received a paycheck since April 30th.
On May 15th, we found out we were not getting paid when our checks did not hit our accounts.
Our medical insurance runs out tonight at midnight.
We found this out when an employee’s pregnant wife was told by her doctor, this was on Tuesday 22nd May this week.
The company has not communicated anything concrete to the team throughout this process, leaving team members to figure out insurance stop-gaps (where people could afford it), etc. on their own.
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