Miami, FL—Motorsport Games, the video game developer known for its racing video games and esports events, has announced significant layoffs as part of a broader effort to cut costs and stabilize its finances. The company is laying off 39% of its global workforce, amounting to 24 employees and contractors across the United States and the United Kingdom. The layoffs come as the company also considers a potential sale or merger, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
Financial Restructuring and Layoffs
The decision to cut nearly 40% of its staff is part of a larger restructuring effort aimed at optimizing cash flow and reversing what the company described as “over-expansion” in previous years. Motorsport Games President and CEO Stephen Hood emphasized the need for these changes, stating, “The cost-cutting measures have optimized cash flow, allowing us to reverse prior over-expansion.”
This marks the second major round of layoffs in just over a year for the Miami-based company, which slashed 40% of its workforce in 2023. It remains unclear how many employees in South Florida were affected by the most recent job cuts, as company representatives were not immediately available for comment.