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38 Studios fails to pay staff, reportedly issues lay-offs

Friday, 18th May 2012 00:25 GMT By Brenna Hillier

In its efforts to meet loan repayments owed to the state of Rhode Island, Kingdoms of Amalur: Reckoning developer 38 Studios has skipped payroll, and may have let a number of staff go entirely.

WPRI, which has been following the taxpayer funded local scandal closely, reports 38 Studios hand delivered a cheque for the $1.25 million loan repayment it defaulted on earlier this week, triggering an investigation by the state’s Economic Development Corporation.

Unfortunately, despite failing to issue payroll this week, the cheque bounced, as the developer doesn’t actually have the cash.

38 Studios and its staff are refusing to comment on the situation, but according to Joystiq‘s sources, the developer has let go all temporary and contract staff. At its last financial report, the developer has employed 379 full-time staff, 34 full-time contractors and eight interns.

As spotted by Polygon, founder Curt Schilling’s profile was temporarily removed from the developer’s “Visionaries” page, but is back in place now.

Kingdoms of Amalur: Reckoning was published by EA Partners and is 38 Studios’ only release to date. The developer is working on an MMO in the same setting, code named Copernicus.

Thanks, GiantBomb.

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3 Comments

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  1. mtnman3888

    Doesn’t sound very good, KofA was a great game and I was looking forward to what they could improve upon for the next game, although admittedly I wasn’t interested in their MMO.

    On another note, how in the world did the taxpayer get put on the hook if they default on the loan? If I was a resident of RI I would be extremely pissed!

    #1 2 years ago
  2. Se_7_eN

    Now THAT is how you do business!

    #2 2 years ago
  3. fightclubdoll

    @#1 Rhode Island advanced the company some hefty loans to allow them to relocate the studios from Massachusetts. “Too big to fail” was the catch-phrase used to justify it… I believe the same logic was attached to the TITANIC. =-s

    #3 2 years ago