Both Polygon 'n Joystiq be reporting based on sources familiar with the situation that 38 Studios has laid off it be entire staff. This includes both the main 38 Studios office, as well as all employees at Big vast Games, which 38 Studios owned.

Rhode Island governor Lincoln Chafee had commented as recently as yesterday that all attempts be being made t' rescue the studio from closure. He also stated that 38 had yet t' find additional outside funding. Reports coming from inside the studio stated that employees had not been paid since May 1, 'n that all employee health benefits ran out as a today.

Details on this situation be still being investigated. We'll update this story as soon as we know more.