Motorsport Games Announces Staff Reductions Affecting Up to 38 Employees

Motorsport Games, the developer behind Nascar Rivals, has implemented a round of layoffs resulting in the elimination of approximately 38 positions, primarily affecting staff in the UK and Australia. The decision, made to reduce operational expenses, was outlined in a recent SEC filing dated October 29, indicating a reduction of about 40% of the company's global workforce. The restructuring efforts are expected to incur costs ranging from $400,000 to $500,000, covering severance and redundancy payments to affected employees, with the majority of these expenses to be absorbed in the fourth quarter of the company's fiscal year 2023. While the redundancies are anticipated to be finalized by the end of the same period, the process may be prolonged due to legal requirements in the UK and Australia. This development follows a lawsuit earlier in the year in which two Motorsport Games employees successfully claimed unpaid wages, and it comes on the heels of the company reporting a significant loss of $8.2 million in its second-quarter earnings.