- Take-Two is cutting 5% of its workforce, with roughly 600 people affected by the layoff before GTA 6.
- Some in-development video games are being canceled as part of this budget-cut plan.
- Take-Two expects to save around $160 million annually from these cuts, as the restructuring should be completed mainly by the end of 2024.
Video game publishing giant Take-Two Interactive, responsible for the 2K and Rockstar Games, is restructuring. According to a statement, the publishers responsible for Grand Theft Auto are laying off about 5% of their workforce, estimated to be around 600 employees. The complete restructure of Take-Two, along with the layoff, should be mostly completed by December 31, 2024, before GTA 6 comes in 2025.
Along with the layoffs, the company is also canceling several projects that are in development as part of the cost-reduction plan. Without mentioning the names of the projects, the estimated charges for the game are shared to be around up to $200 million. Furthermore, Take-Two expects to save $165 million in annual costs through this move.
Take-Two acquired Gearbox for $460m in a record deal earlier this year. According to Reuters reports, Canceled projects will account for as much as $140 million of the total charges, while severance and employee-related costs are expected to be up to $35 million. As part of this budget cut, Take-Two is also expected to remove some office space.
Take-Two is currently focused on putting GTA 6 on consoles by next year. Although some questions arise around the game being finished before the estimated window, the canceled projects could mean that the company is heavily focusing on the Grand Theft Auto franchise for now.
Earlier, Take-Two released a successful WWE 2K24 (review), and a job listing also suggested a new Mafia game was in the plans. Whatever the case, Take-Two has promised to end the layoff restructure by the last weeks of 2024 as it focuses on the GTA 6 release in 2025.
What do you think about these mass layoffs in the video game industry? Which games do you speculate are canceled due to the budget cuts? Share your thoughts in the comments below.
