40% of Staff Face Layoffs at Motorsport Games Amid Company Turmoil
(image via Motorsport Games)
Over 40% of Motorsport Games staff have been laid off this morning amid company turmoil.
According to Insider Gaming sources, 38 staff were laid off earlier today which has been described by staff as the “true beginning of the end” for the studio. According to LinkedIn, Motorsport Games had just shy of 100 employees before the layoffs and has seen a significant reduction in staff since 2021.
It was said that staff were called one by one into quick 10 to 15-minute calls headed by HR to be told they were being laid off from the company. Staff were then given 10 minutes to say goodbye to co-workers in Teams before being logged out of their accounts.
It’s understood that staff will not be given any redundancy payment.
Yesterday, staff were sent an email about “potential workplace restructure” which was “due to economic downturn”. Staff was informed that the email was to inform staff that “the review of the business’ operations and restructure requirements may result in workplace changes, including potential redundancies”. The email stated that “We [Motorsport Games] plan to undertake the view quickly so that you know the outcome and impact on your employment as soon as possible”. Those made redundant were told less than 24 hours later.
The layoffs come following turmoil at Motorsport Games, which saw its entire Board of Directors resign in November 2022 due to what was reported as a dispute over how funding would be raised for the company.