Motorsport Games Suffers More Layoffs As Struggles Continue - October 2024

As a long-time fan of Motorsport Games and their exceptional racing video games, it’s disheartening to see yet another round of layoffs affecting the studio. I’ve followed their journey closely, from Le Mans Ultimate to other thrilling racing experiences they’ve created. It seems like they’re caught in a never-ending race for funding, trying hard but falling short.

The creators of Le Mans Ultimate and other popular racing video games, known as Motorsport Games, have recently carried out another round of job reductions.

Earlier on Thursday, TopMob became aware of job cuts happening across their social media and marketing departments through studio-wide announcements on social media. However, they couldn’t yet verify the exact number of employees affected. Later reports from Traxion, previously a subsidiary of Motorsport Games, confirmed that 10 employees were laid off in this round. Since then, TopMob has managed to confirm, according to reliable sources, that around 10 employees were let go.

Following rumors about potential job cuts, the company’s brand and marketing manager announced on social media platforms that he was let go from Studio 397 and Motorsport Games as part of a larger downsizing within the organization.

Why More Layoffs At Motorsport Games?

It appears that TopMob comprehends the reason behind the layoffs is due to the studio’s ongoing difficulty in securing investors to support the company financially. Several reliable sources suggest that the company has persistently pursued diverse funding avenues, but as of now, no substantial progress has been made.

According to a source, they’re putting effort into it, but they require more resources than they currently have; however, their ultimate aim is still to launch the game ‘Le Mans Ultimate’ on consoles at some point in the future.

Motorsport Games has announced that they will be holding a “Shareholders’ Special Meeting” on October 25, located in Miami, Florida. During this meeting, they plan to vote on a proposed purchase of up to 949,310 shares of their Class A Common Stock. If this transaction is approved and all the indicated shares are sold, it could potentially generate around $1.5 million in funding, considering the current market value of Motorsport Games’ stocks.

By October 2023, Motorsport Games transferred the NASCAR licensing rights to iRacing. Soon afterward, they too were deprived of the Indy Car game’s licensing rights, which they had been developing.

Motorsport Games has not yet provided a response to numerous inquiries from TopMob regarding the job cuts and current state of the business.

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