Take-Two Interactive Announces Layoffs and Project Cancellations in Cost-Cutting Move

Take-Two Interactive, the publisher of Grand Theft Auto, announces layoffs and project cancellations to cut costs, citing the need to focus on the anticipated release of GTA 6 in 2025.

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Bijay Laxmi
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Take-Two Interactive Announces Layoffs and Project Cancellations in Cost-Cutting Move

Take-Two Interactive Announces Layoffs and Project Cancellations in Cost-Cutting Move | Image Credit: Andrew Kelly | Reuters

Take-Two Interactive, the publisher behind the popular Grand Theft Auto series, has announced a restructuring plan that includes laying off approximately 5% of its workforce, which amounts to around 600 employees. The company is also canceling several projects currently in development as part of its cost-reduction strategy.

The restructuring is expected to generate annual cost savings of over $165 million, with the project cancellations accounting for $120 million to $140 million in charges. Additionally, employee severance and related costs are estimated to be between $25 million and $35 million, while office space reductions will result in charges of $15 million to $25 million.

Take-Two Interactive CEO Strauss Zelnick had previously stated that the company's cost-reduction program would not lead to any layoffs. However, the plans have now changed, with the company citing the need to streamline its operations and focus on the anticipated release of Grand Theft Auto 6 in 2025 as the primary reasons behind these actions.

Why this matters: The layoffs and project cancellations at Take-Two Interactive are part of a broader trend in the gaming industry, with other major companies like Riot Games, Electronic Arts, and Sony also announcing significant workforce reductions in recent months. This development highlights the challenges faced by the industry as it adapts to changing market conditions and the slowdown in revenue growth across PC and console gaming sectors.

Despite the restructuring, Take-Two Interactive remains committed to delivering high-quality gaming experiences and continues to be a powerhouse in the gaming industry. The company has a rich portfolio of successful franchises, including Grand Theft Auto, Red Dead Redemption, and NBA 2K. The release of Grand Theft Auto 6 on PS5 and Xbox Series X|S in 2025 is expected to be a major boost for the company's sales and revenue.

Key Takeaways

  • Take-Two Interactive to lay off 5% of workforce, around 600 employees.
  • Company canceling several projects, resulting in $120-$140M in charges.
  • Restructuring expected to generate $165M in annual cost savings.
  • Layoffs and project cancellations part of broader gaming industry trend.
  • GTA 6 release on PS5, Xbox Series X|S expected in 2025.