Gov. Chafee confirms 38 Studios layoffs

PROVIDENCE, R.I. (WPRI) - Rhode Island Governor Lincoln Chafee has confirmed for Eyewitness News that 38 Studios is laying off employees.

It's unclear at this time how many people the taxpayer-backed video game company will be letting go.

On Monday night, the Rhode Island Economic Development Corporation's Board of Directors met with Curt Schilling to discuss the latest developments involving the state's deal with 38 Studios.

Eyewitness News has learned that Schilling was not in the open session of the meeting, instead he went immediately into the executive session with Gov. Lincoln Chafee and EDC board members.

It's still unclear whether or not the video gaming company has made payroll.

"Payroll? We're not sure. We are going to hear more from them here," Chafee said outside EDC headquarters in Providence.

Last week, state leaders began expressing concerns about the firm's financial situation, after 38 Studios defaulted on a $1.125 million payment to the EDC.

• Nesi's Notes: Full Coverage of 38 Studios
• PDF: EDC Fact Sheet on 38 Studios
• Timeline: How 38 Studios Deal Unfolded

Schilling's company eventually made the overdue payment on Friday .

38 Studios was lured from Massachusetts to Rhode Island in 2010 after the Rhode Island EDC offered a $75 million loan guarantee.