38 Studios founder Curt Schilling fired all of his employees on Thursday in the wake of an acute financial crisis. Workers were informed of the non-voluntary and non-disciplinary layoffs through an email, which also stated that the company was unable to pay off its debts amounting to $1.1 million.
In 2010, the State of Massachusetts allotted Schilling’s Company $75 million loan guarantee backed by tax payers after an incentive to move its headquarters from the state to Rhode Islands. The funding promised a huge increase in employment and tax revenue for the state, but things did not turn out as expected and 38 Studios failed to make $1.1 million payment to the state’s Economic Development Corporation.
Governor Boston Globe., who was never in the favor of granting the loan guarantee, said the debt had led to the firing of the staff. Last week, the company told its officials that it couldn't make payroll, firing a total of 300 provident employees. According to Chafee, he called an emergency meeting to give Schilling a chance to explain how he planned to save the company and why Rhode Island should sanction millions more for its upcoming projects. But not just Schilling's presentation was unenthusiastic, his rescue plan also sounded very unrealistic. "For all the board members, there was a feeling that we needed to be sold.” Chaffee said in an interview with the
The employees were not the only ones to exit. CEO Jen MacLean and a top executive have also stepped down and removed the company from their Linkedin profiles. The firings came only two days after Schilling praised his employees for demonstrating extraordinary resilience during the changing times, reports International Business Times.
The company that spent years and years developing its products took less than three weeks to completely collapse to the ground. Executives who assured the Rhode Island officials that they would make timely payment of their bills, laid off their entire staff on Thursday. Chaffee said that 38 Studios had kept everyone in the dark and even the employees were unaware of the financial crisis the company was going through.
Schilling, who has never been spotted shying away from the media, has made himself unavailable for questions from reporters. On Friday, he wrote on his Facebook page, “God Bless you and thank you to everyone sending thoughts and prayers to the team and families of 38 Studios.”