Take-Two Interactive Software has revealed plans to lay off approximately 5 percent of its workforce, equating to around 600 employees.
The cost-reduction initiative comes as the video gaming industry continues to navigate a period of extensive job cuts spanning over two years.
Take-Two Interactive Software, the game publisher behind the iconic “Grand Theft Auto” franchise, will discontinue several projects in development, with anticipated charges totaling up to $200 million. The company opted not to disclose the specific gaming projects affected by the cancellations.
The job cut and project cancellations are projected to yield over $165 million in annual cost savings for Take-Two. This decision aligns the company with industry peers such as Tencent-owned Riot Games, Electronic Arts, and Japan’s Sony, all of which have implemented workforce reductions in response to uncertain consumer spending patterns following the pandemic-era surge.
According to research firm Newzoo, revenue growth in PC and console gaming is expected to remain below pre-pandemic levels through 2026, reflecting a decrease in gamers’ playtime, Reuters news report said.
Canceled projects are estimated to contribute up to $140 million to the total charges, while severance and employee-related expenses are forecasted to reach up to $35 million. Take-Two also plans to downsize some office space as part of its cost-saving measures.
With a workforce of 11,580 full-time employees as of March 2023, Take-Two recently finalized an agreement to acquire Gearbox, the developer behind “Borderlands,” for $460 million. This acquisition reflects a trend of industry consolidation, albeit at a time when prices for renowned title developers are escalating.
While Take-Two has been primarily focused on the development of the next installment in the immensely popular “Grand Theft Auto” series, reports suggest that the release of the title may face delays, potentially shifting from 2025 to 2026.
