PROVIDENCE, R.I. (CBS/AP) — 38 Studios, Curt Schilling’s video gaming company laid off its entire staff on Thursday, RI Governor Lincoln Chafee confirmed on Thursday.

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“It’s not a good situation. I’m not here to share good news,” the Governor said in a news conference while vowing to continue to work with 38 Studios.

Top Rhode Island officials said they spoke with company executives earlier in the day and executives made no mention about the layoffs during those discussions.

A tech and video gaming blog first reported the news of the layoffs.

Earlier in the day, an email was sent out to all staff members informing them of the layoffs.

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The text of that email, obtained and provided by CBS Affiliate WPRI-TV said:

“The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary. These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012.”

As of March 15, 38 Studios employed 379 full-time workers, with 288 of them working in Providence, according to a disclosure notice sent to bondholders. The company also reported 34 full-time contractors and eight interns. The company listed 18 job openings on its website as of Tuesday.

38 Studios moved from Massachusetts in 2010 after Rhode Island offered a $75 million loan guarantee that officials said would bring jobs and tax revenue. The company was late this month on a $1.1 million payment to the EDC.

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(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)