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An inside source close to the situation circulating around OnLive says that while the company isn’t flat-out closing up shop, it is shedding a large chunk of its staff. That same source also says that a third-party company bought OnLive, necessitating the dramatic upheaval that occurred yesterday.

Engadget’s insider gave some specifics about the entire ordeal, and from the sound of it, OnLive has been in dire financial straights for longer than many people might have expected:

We’ve spoken with a (now former) employee of the gaming service who ran down today’s events for us. According to the account, a meeting was held at OnLive’s offices at 10AM this morning, wherein the company’s CEO announced a massive staff layoff — at least 50 percent of the staff, according to our source’s numbers. The layoffs come as part of across the board cuts to the company, and all those out of a job will have their key cards deactivated as of 4PM local time today. The source was understandably baffled by the abruptness of the news, along with the added blow that no severance will be offered and stock holdings are essentially worth nothing.

No severance options (continued pay for a set amount of time after termination) will definitely be a huge blow to all the OnLive staff members that were fired yesterday morning, and if OnLive’s stock is worthless, that’s even worse.

Considering the expensive booth space that OnLive rents for gaming conventions like E3, it was a bit surprising to hear the company internally combust in the space of a single day. Some employees were offered positions with the company that bought out OnLive, but that group’s name was not identified by the source.

Source: Engadget

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OnLive Bought By Third-Party Company, Sheds 50 Percent Of Staff

An inside source close to the situation circulating around OnLive says that while the company isn't flat-out closing up shop, it is shedding a large chunk of its staff.

By EGM Staff | 08/18/2012 11:54 AM PT

News

An inside source close to the situation circulating around OnLive says that while the company isn’t flat-out closing up shop, it is shedding a large chunk of its staff. That same source also says that a third-party company bought OnLive, necessitating the dramatic upheaval that occurred yesterday.

Engadget’s insider gave some specifics about the entire ordeal, and from the sound of it, OnLive has been in dire financial straights for longer than many people might have expected:

We’ve spoken with a (now former) employee of the gaming service who ran down today’s events for us. According to the account, a meeting was held at OnLive’s offices at 10AM this morning, wherein the company’s CEO announced a massive staff layoff — at least 50 percent of the staff, according to our source’s numbers. The layoffs come as part of across the board cuts to the company, and all those out of a job will have their key cards deactivated as of 4PM local time today. The source was understandably baffled by the abruptness of the news, along with the added blow that no severance will be offered and stock holdings are essentially worth nothing.

No severance options (continued pay for a set amount of time after termination) will definitely be a huge blow to all the OnLive staff members that were fired yesterday morning, and if OnLive’s stock is worthless, that’s even worse.

Considering the expensive booth space that OnLive rents for gaming conventions like E3, it was a bit surprising to hear the company internally combust in the space of a single day. Some employees were offered positions with the company that bought out OnLive, but that group’s name was not identified by the source.

Source: Engadget

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