Curt Schilling's video game company 38 Studios has been in deep financial trouble for some time now. On Thursday, the former All-Star pitcher laid off all employees at his Rhode Island-based company.
The move was made due to financial difficulties, according to what a company insider told the Boston Globe. The company had nearly 400 employees on its active payroll.
38 Studios had received a $75 million loan from Rhode Island in 2010 to ensure a move from Maynard to the state's capital in Providence. Earlier this month, the Rhode Island governemtn held an emergency meeting after Schilling's company was more than two weeks late on a $1.1 million payment.
Not only did 38 Studios miss the loan payment, but they were also unable to make payroll and even lost a number of their top financial officials in recent weeks. Schilling's decision to lay off his employees almost ensures the company's failing and will likely force the state of Rhode Island to pay a severance package to the nearly 400 individual employees.
The company sent an email to its employees on Thursday afternoon, explaining the layoffs, according to WPRI:
"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," Schilling's 38 Studios said in an inter-office email. "These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012."
Schilling had a very successful baseball career in stints with five different clubs. The six-time All Star is best known for his time with the Boston Red Sox, in which he was able to win two World Series in four seasons with the team.
The now 45-year-old Schilling was 216-146 with a 3.46 ERA over 19 major league seasons. Apart from running 38 Studios, Schilling also currently serves as a baseball analyst on ESPN.
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