It looks like the long, twisting saga of problems that have plagued Kingdoms of Amalur developers 38 studios reached a bitter conclusion yesterday. Originally posted as a rumor, according to various sources, 38 Studios last paid their employees on April 30th and internally announced a companywide layoff effective immediately. Former employees and their families’ medical insurance also have run dry, ending Thursday night at midnight.
Speaking to Kotaku an anonymous informed them that paychecks have not been issued to employees since the end of last month. Last week, on May 15th they found out that would not be paid any remaining wages owed to them. This did not just affect 38 Studios but also their development partners Big House Games who were purchased by 38 Studios In 2009.
The internal email sent to all employees regarding the lay-off also hit the web sometime later in the evening. In part it read: “The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary.”
The news of these massive layoffs comes just days after the studio failed to repay the government of Rhode Island $1.1million dollars to satisfy the conditions of an economic development loan. The company handed over two checks to the government – one for approximately one million $ and another for $100,000. Only the $100,000 check cleared and the company admitted it did not have the funds to repay the $1.1 million dollar figure.
We wish the best to everyone affected by these massive layoffs. The tech economy has been hit hard recently and we hope that everyone lands on their feet.