According to this Joystiq report 38 Studios has laid off its entire staff across both its Providence, Rhode Island studio and its Bug Huge Games studio in Baltimore, Maryland. An internal memo obtained by news station WPRI reveals the details of the layoff and how employees received the news. The memo reads:
"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. These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012."
Big Huge Games and 38 Studios had a staff of 379 full-time employees as of March 15, according to the news report.
Our thoughts and prayers go out to employees at both studios. Where Curt Schilling's studio and his MMO go from here is unclear at this point, but we'll keep you posted.
Source: Joystiq by way of MaskedPixelante and Andrew Eisen.