Take-Two Interactive, the company behind popular video game franchises such as the Grand Theft Auto series, has announced it will lay off 5 percent of its global workforce, which equates to around 600 employees.
This decision is part of a broader cost reduction strategy that aims to achieve savings of up to 200 million dollars by the end of 2024. The redundancies are expected to generate annual savings of over 165 million dollars for the company.
Cost reduction at Take-Two Interactive
These measures also include the cancellation of several video games in development and the reduction of office space. These include several sports games and mobile games at the subsidiary Zynga.
Particularly affected by the layoffs is Take-Two’s publishing label, Private Division, known for games such as The Outer Worlds and “Kerbal Space Program 2”. These cuts come despite a recent period of significant growth as the company looks to realign its operations with its long-term strategic priorities.
Take-Two’s move reflects broader trends in the technology and gaming industries, where many companies have implemented similar cost-cutting measures following periods of rapid growth and in response to changing market conditions.
However, it is currently unclear whether the subsidiary Rockstar Games, where GTA 6 is currently being developed, is also affected by layoffs. According to the official trailer, the open-world title is due to be released sometime in 2025.
What is interesting about the new wave of redundancies is the fact that Take-Two has just acquired the development studio Gearbox Software from Embracer for around 460 million US dollars. So the publisher can’t be doing too badly. Ultimately, however, the publisher is a listed company where investors want to see growth and, above all, increasing profits.
