OnLive has Explained All of the Layoffs

OnLive, whom is having issues with finances, has said today that it plans to continue its operations under the same OnLive name and has promised its many users that the service will “continue on without interruption.” I think a lot of people were scared that OnLive would be completely gone, but rest well knowing that they plan on keeping a happy playerbase!

This announcement comes only two days after many reports of a major corporate shakeup in which the cloud gaming company had out of the blue, fired all of its many employee’s and was preparing to file for bankruptcy. OnLive later confirmed that the companies assets had been sold to an unnamed suitor with sound funding behind them.

The company later said in a statement today that all of the customers purchases will remain intact:

All OnLive Devices and Apps, as well as all OnLive partnerships, are expected to continue without interruption and all customer purchases will remain intact; users are not expected to notice any change whatsoever. OnLive’s current initiatives will continue as well, with major announcements of new products and services planned in the coming weeks and months.

OnLive has said that its board of directors decided that a restructure of the company was needed under an “assignment for the benefit of creditors,” which is an alternative to the bankruptcy they were originally going to file. OnLive’s assets, including all of its technology and intellectual property were transferred to the new company in what it had called “a heartbreaking transition for everyone involved.” Imagine all of the scrambling that was going on just to make sure everything was safe in one work day. Though this is getting be pretty normal as of late, I still feel bad for the guys.

The only thing is, under this type of transaction, no shares or employee’s were allowed to be transferred. As a result of that, the Palo Alto, Calif-based said it was necessary to dismiss the entire OnLive staff but that it is in the process of rehiring many of the fired staff, which is very, very good news to hear.

“Almost half of OnLive’s staff were given employment offers by the new company at their current salaries immediately upon the transfer, and the non-hired staff will be given offers to do consulting in return for options in the new company,” the company said in a statement. “Upon closing additional funding, the company plans to hire more staff, both former OnLive employees as well as new employees.”

OnLive still has not revealed as to who the new owners of the company are, but they did say the first investor was an affiliate of Lauder Partners, an earlier investor in the company a couple of years ago back in 2009. OnLive, which had emerged in 2009 and launched the next year some promising console-like speeds over a broadband connection, was led by the serial tech entrepreneur, Steve Perlman.

We’ll be keeping you updated on more news about OnLive as it releases. As for now, do you use OnLive’s service? Would you be sad to see it go?

Sound off in the comments!