The world of esports is once again undergoing major changes. Galaxy Racer, a prominent organization, is facing serious allegations. It is alleged that the North American workforce has been laid off and that the company still owes these employees three months’ salary.
Galaxy Racer has let a lot of staff go in North America. The exact background is unclear, but probably it has to do with financial challenges, such as cash flow issues, which could affect the company’s ability to pay wages and lead to layoffs.
The situation is exacerbated by the fact that not only permanent employees are said to be affected by the layoffs, but also Her Galaxy, an offshoot of the company that focuses specifically on hosting competitions for women in North America. According to other reports, payment delays have been going on for weeks and employees have already been laid off.
Galaxy Racer criticized by former employees
Galaxy Racer, a prominent company in the esports sector, has now commented on the redundancies. According to a report, the company is facing a “strategic realignment” and plans to focus on programs for influencers and content creators. However, details of this restructuring are not yet available.
It has been reported that employees from the North American division and the Her Galaxy project have been made redundant. Former employees have reported this on social media.
However, several of those affected now claim that they are still owed several months’ salary. Some have threatened to take legal action and have already sent a lawyer’s letter to the company.There are reports that employees were excluded from the video conference during a meeting about the redundancies and their company emails were deactivated, which does not paint the company in a good light.
— drank (@sugg1tt) November 30, 2023
One former employee even publicly warned against the company, pointing to a lack of staff, missing budgets and missing payments to service providers and tournament winners.
Fired their entire staff that has been requesting backpay for MONTHS!
Stay away from their creator scam! They have no staff, no budgets, no plan forward. They owe vendors, talent & tournament winners
— Indyburgh (@indyburgh) November 30, 2023
Galaxy Racer comments on redundancies
Galaxy Racer immediately came forward and publicly stated that allegedly all payments to employees had been made in full prior to the layoffs. There are also allegations of missing health insurance contributions for three months, but only information from an anonymous source is available and the esports organization has not commented on this.
The incidents at Her Galaxy had already led to initial reports this summer stating that employees had not been paid. According to the latest reports, the company now wants to try to move in a different direction, although it is unclear in which direction.