Firefall, the MMO from Red5, hasn’t been the success the developers were hoping for. Symptomatic of its not catching on with the gaming populace are the rounds of layoffs Red5 faced in November and December of this eyar.

Now, it seems that the company is having an issue with paying its employees. In fact, Red5 missed payroll for Christmas. Kotaku received a letter from several anonymous sources. The letter comes from somewhere in the managerial tier of the company, and several employees reported receiving it.

Here it is as published by Kotaku.

Hi Team,

I regret to inform you that Red5 currently does not have the funds necessary to meet our payroll scheduled for today Friday, December 25. Due to this, there will not be payroll paid this week.

Red5 and The9, our parent company, is currently working to resolve this, during the holidays, as soon as possible. We are hopeful we’ll be able to resolve this and will update the team immediately.

I assume they left the signature off on purpose.

If Red5 and The9 are genuinely unable to pay their staff, I suspect we’ll be hearing about more layoffs and a possible closure in the near future. Best of luck to those affected at Red5.