Take-Two Interactive, the publisher of Grand Theft Auto, has announced a cost reduction program aimed at improving efficiencies and margins, resulting in the cancellation of several games in development and a workforce reduction of approximately 5%. The company’s decision to streamline its operations and organizational structure will also involve closing some office spaces, with anticipated charges of $15 to $25 million related to these cuts.
While the exact number of employees affected by the layoffs was not disclosed, it is estimated to be around 600 based on Take-Two’s global workforce of nearly 11,580 employees. This marks the second round of layoffs in just over a year for the company, following a period of significant growth. Despite reporting impressive financial figures, including $1.3 billion in net bookings for the last quarter, Take-Two’s restructuring reflects broader challenges in the games industry, which has seen thousands of job losses in recent years.
The ongoing wave of layoffs in the gaming industry has hit companies like Relic, Certain Affinity, Sega, EA, and now Take-Two. The company’s decision to lay off employees and cancel projects underscores the tough market conditions faced by many game developers and publishers. As the industry continues to evolve, the impact of these workforce reductions raises concerns about the future stability and growth prospects for gaming companies worldwide.