Motorsport Games cuts 38 jobs to reduce operating costs - 40% of employees

News of game developers being laid off continues unabated. This time, layoffs have been made at Motorsport Games, which develops Nascar games.

Here's What We Know

The company had to cut 38 jobs, which is about 40% of employees. Most of the layoffs took place in studios in the UK and Australia.

The layoffs were made to "reduce operating costs compared to the previous year". This was stated in a statement to the US Securities and Exchange Commission.

Motorsport Games estimates the costs at $400,000 to $500,000, which mainly consists of severance and redundancy costs. The majority will be paid in the fourth quarter of fiscal 2023. The redundancy is also expected to be completed by this time. However, the process may be delayed due to "legislative requirements in Australia and the UK", as stated in the statement to the Commission.

It is worth reminding that this year, two Motorsport Games employees have already won a lawsuit for non-payment of wages.

Source: gamesindustry