38 Studios, Owned by Curt Schilling, Lays Off Entire Staff
Due to massive financial issues, the young company that produced only one game, has laid off it’s entire staff according to buzz around the Internet this afternoon.
38 Studios missed a loan payment earlier this month, and has also bounced a check due to the state of Rhode Island and failed to make payroll. Schilling’s company was hoping tax credits from the state would help them keep afloat through the remainder of the fiscal year, giving them an opportunity to get a second game into the market, but these credits did not come through due to the company’s incorporation status.
As most LLCs are, 38 Studios is incorporated in the State of Delaware, which does not allow it to file for tax credits furnished by the State of Rhode Island. This oversight not only cost the jobs of 38 Studios employees but also the job of the chairwoman of the Rhode Island Economic Development Corporation, who stepped down last week given news of the company’s pending demise.
Curt Schiling was a well-loved and respected pitcher during this time in the majors, whose consistent grit and hard-fought wins won him plenty of respect around the game and among fans. Schilling always found a way to get things done, and it was reasonable to assume the same would be true in the world of business.
Success on the diamond, court, or field, however, is far from success in the boardroom when the money at stake is yours and yours alone.
It’s always a shame to hear of layoffs in our fragile economy and the 38 Studios layoffs are no different.
Don’t count Curt Schilling out just yet though.
You have to assume he still has a few tricks up his sleeve. He always did.