Nascar Rivals developer Motorsport Games has cut around 38 jobs in a recent round of layoffs, mostly affecting roles in the UK and Australia.
The Miami-based studio cut approximately 40% of its workforce worldwide “to bring down its year-over-year operating expense,” as detailed in a SEC filing on October 29.
Its restructuring program is estimated to be approximately $400,000 to $500,000 consisting of severance and redundancy costs to employees, the majority of which will be paid in the fourth quarter of its fiscal year 2023.
Redundancies are expected to have been completed by the same period. However, the process may take longer due to “legal requirements in Australia and the UK” according to the filing.
Earlier this year, two Motorsport Games employees won an unpaid wages lawsuit. This news came after the studio reported a loss of $8.2 million for its earnings in the second quarter.
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