Sources speaking to GamesIndustry International are telling the publication that Malta-based development studio TRC Family Media is in serious financial trouble. According to multiple sources inside the company, TRC's financial situation is so dire that it has told employees that 90 percent of the company's work force may be laid off. The studio founded by ex-Sony Computer Entertainment head Chris Deering has been struggling for awhile, with some inside the company claiming that they have not been paid for several months. Things are so bad, sources say, that no staff remain in a production capacity at this point in time.
The news of the layoffs comes from an internal email sent to employees and obtained by GamesIndustry International. The email from an "employee representative" indicates that the layoffs were a big surprise to everyone.
"As your employee representative, I have just been informed that due to the Company's financial situation, TRC Family Entertainment Limited is unable to provide work for all of its employees and may have to make redundancies in accordance to the collective redundancies regulations (LN 428 of 2002)," the letter tells employees. "At present the Company anticipates that it will have to make all current employees redundant except to a small executive team, creative head, a small Finance Team and the HR & Admin Team. If this is the case, everyone will be informed of their notice period in due course."
The letter goes on to say that a "final decision" on these layoffs has not been made, but the decision will be made over the next thirty days.
GII has more information on what might have led to the company's current financial situation here.