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Take-Two Interactive Software, Inc., the publisher of the famous "Grand Theft Auto" action-adventure game series, announced it would lay off five percent of its workforce, which means 600 employees. They will all be let go by the end of 2024.
Abolition of Games and Projects to Save
As per Engadget, in addition to the job cuts, Take-Two Interactive will discontinue some of its projects that are already in development. The company said the cancellation of games and termination of workers are part of its cost-cutting scheme.
The workforce reduction and slashing of games and projects came a month after Take-Two Interactive's chief executive officer, Strauss Zelnick, said that the "hardest thing to do is to lay off colleagues and we have no current plans."
Take-Two Interactive's recent filing with the U.S. Securities Exchange Commission (SEC) revealed the dismissals and dropping of some projects. The video game company headquartered in New York said that these moves will save it around $165 million per year.
"The Board of Directors of Take-Two Interactive Software, Inc. approved a cost reduction program to identify efficiencies across its business and enhance the Company's margin profile, while still investing for growth," the company said in its SEC Filing. "As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs."
Layoff Trend in the Gaming Industry
Bloomberg reported that Take-Two Interactive is the latest major company in the gaming sector to axe hundreds if not thousands of workers this year. It has joined Riot Games, Microsoft, and Unity Software Inc. in the list of firms to implement mass layoffs.
The "Grand Theft Auto" game publisher employs 11,580 full-time staff as of the end of its last fiscal year. Meanwhile, the company is set to launch the sixth installation of GTA next year, and it is expected to become one of the highest-grossing game releases of all time.
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