38 Studios announces layoffs

38 Studios announces layoffs
Seth Tipps

By Seth Tipps

May 22nd 2012 at 3:40AM

Company able to pay 'a number' of employees, but says it was forced to make cuts

Curt Schilling has confirmed his studio was forced to make job cuts, following a week-long crisis over an upaid installment on a state-guaranteed $75 million loan that could have left taxpayers on the hook for up to $112 million.

Schilling spoke to reporters outside a closed door meeting with Rhode Island Governor Lincoln Chafee and state economic officials.

Details were scarce and rumors abounded in the week following the news of 38 Studios' financial woes, and there were reports that the studio had been unable to pay its workers, and was asking the state for more aid.

"There’s so much misinformation out there I cannot begin to clear it up with a sound bite," said Schilling as he hurriedly left the meeting today.

“We’re not asking the taxpayers for more money.”

This is the first time Schilling has commented on the matter, and his remarks, reported by the Boston Herald, come following the news that the studio had made the late $1.125 million payment.

Schilling said his studio had been able to pay a number of employees, but was unable to avoid layoffs.

“We’re working through all this. It’s a company in a difficult, complex and competitive market,” Governor Chafee told reporters. “I know taxpayers want to know more. They’ll get their answers over time.”

Another meeting will be scheduled with the economic development corporation to discuss 38 Studios, which has requested millions in tax relief this year. It is unknown what Governor Chafee's office is willing to discuss, but he has said there would be "no more easy money," and announced changes to the state's tax credit program.

“I want 38 Studios to be successful, as I’m sure every Rhode Islander does,” he said. “We’re into it for tens of millions of dollars.”