'Grand Theft Auto' maker Take-Two to lay off around 600 employees, cancel gaming projects for cost savings

[Jobhunter]

 

Take-Two Interactive, the publisher behind the renowned “Grand Theft Auto” franchise and parent company of Rockstar Games, is planning to dismiss approximately 5% of its staff, translating to around 600 employees. This decision is part of a broader trend in the video gaming industry, which has seen an extension of job cuts for over two years.

 

The cost-reduction strategy doesn’t stop at layoffs. Take-Two Interactive also revealed plans to discontinue several projects in development. While the company refrained from specifying which projects are on the chopping block, the cancellation is expected to result in total charges of up to $200 million.

 

This strategic move by Take-Two Interactive is projected to yield more than $165 million in annual cost savings. The company’s shares, which have fallen nearly 10% this year, were 1% higher in extended trading following the announcement.

 

Take-Two Interactive’s actions mirror those of other major players in the gaming industry, such as Electronic Arts, Nintendo, and Sony Playstation. These companies have also reduced their workforce this year due to uncertain consumer spending following the pandemic-era boom.

 

The company, which had 11,580 full-time employees as of March 2023, has been focusing on the development of the next installment in the best-selling “Grand Theft Auto” franchise. However, some reports suggest that the title could be delayed into 2026 from 2025.

 

How will these cost-cutting measures impact the future of Take-Two Interactive and the gaming industry at large? We invite you to share your thoughts and perspectives on this matter.

 

Read more:

• https://www.gamesindustry.biz/take-two-laying-off-5-of-staff
• https://sea.ign.com/grand-theft-auto-vi-rumored-title/214556/news/take-two-announces-layoffs-while-canceling-multiple-in-development-projects
• https://www.bloomberg.com/news/articles/2024-04-16/take-two-to-cut-workforce-5-drop-projects-in-savings-drive

 

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