Motorsport Games, the studio behind Le Mans Ultimate and other racing video games, has had another round of layoffs.
Insider Gaming first learned of the layoffs earlier on Thursday across the studio’s social media and marketing departments, but couldn’t confirm the number of employees that were impacted. Traxion, which was formerly owned by Motorsport Games, reports that 10 employees were let go in the latest round. Insider Gaming has since been able to corroborate that the number is “around there”, per sources.
After talks of layoffs began, a brand and marketing manager for the company took to social media to confirm that he had been “made redundant from Studio 397 and Motorsport Games due to further reductions in the workforce.”
Why More Layoffs At Motorsport Games?
As far as why the layoffs are taking place, Insider Gaming understands that the studio has continued to struggle to find investors to help fund the company. Multiple sources have said that the company has continued to look for various funding opportunities, but nothing substantial has been achieved yet.
“They’re trying, but they need more than what they’re getting,” said one source. “The goal remains to release Le Mans Ultimate on console in the future.”
Motorsport Games is scheduled to hole a “Special Meeting of Stockholders” on October 25 in Miami, Florida. As part of the meeting, they will hold a vote to approve a purchase of up to 949,310 shares of Motorsport Games Class A Common Stock. Should that deal be approved and the company sell all of the aforementioned shares, it could bring in roughly $1.5 million in funding based on the current market price of Motorsport Games shares.
In October 2023, Motorsport Games sold the license to NASCAR to iRacing. Not long after, the company also lost the license to the Indy Car game that had been in development.
Motorsport Games has yet to respond to multiple requests for comment from Insider Gaming on the layoffs and status of the company.
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