Video game publishing giant Take-Two Interactive, known for its 2K and Rockstar Games subsidiaries, is undergoing a restructuring. The company has announced that it will be laying off approximately 5% of its workforce, which is estimated to be around 600 employees. The complete restructuring of Take-Two, including the layoffs, is expected to be mostly completed by December 31, 2024, in preparation for the release of GTA 6 in 2025.
In addition to the layoffs, the company is canceling several development projects as part of its cost-reduction plan. While the names of these projects were not disclosed, the estimated charges for the cancellations are reported to be up to $200 million. Take-Two also anticipates saving $165 million annually through this initiative.
Take-Two made a record deal earlier this year by acquiring Gearbox for $460 million. Reuters reports, indicate that canceled projects will make up a significant portion of the total charges, potentially reaching up to $140 million, with severance and employee-related costs expected to be around $35 million. Additionally, Take-Two plans to reduce office space as part of these budget cuts.
Take-Two’s primary focus is getting GTA 6 onto consoles by next year. While there are concerns about meeting the estimated timeline, the cancellation of projects suggests a strong emphasis on the Grand Theft Auto franchise for now.
Previously, Take-Two launched the successful WWE 2K24 (review), and indications from a job listing hinted at plans for a new Mafia game. Regardless, Take-Two has committed to completing the restructuring and layoffs by the end of 2024, as it gears up for the GTA 6 release in 2025.
Comment below with your thoughts on the recent wave of mass layoffs in the video game industry. Which games do you think might have been canceled as a result of budget cuts? Let’s discuss!
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