Take-Two Interactive Announces Layoffs and Project Cancellations Amid Industry Challenges

Take-Two Interactive, known for "Grand Theft Auto," to cut 5% of workforce, around 600 jobs, and cancel projects.

  • Take-Two Interactive, known for “Grand Theft Auto,” to cut 5% of workforce, around 600 jobs, and cancel projects.
  • Layoffs and cancellations part of broader industry trend responding to economic challenges post-pandemic.
  • Despite adjustments, Take-Two remains focused on developing next “Grand Theft Auto” installment.

Take-Two Interactive Software, the company behind the iconic “Grand Theft Auto” franchise, has revealed plans to reduce its workforce by approximately 5%, affecting around 600 employees, and cancel several ongoing projects. This decision aligns with a broader trend in the gaming industry, reflecting efforts to adapt to economic challenges following the pandemic. While specific details about the scrapped projects were not disclosed, the company aims to optimize operations and manage expenses more effectively.

The layoffs and project cancellations are expected to result in total charges of up to $200 million, with canceled projects contributing about $140 million to these expenses. Additionally, severance and other employee-related costs are estimated to account for up to $35 million. Despite these cost-saving measures, Take-Two remains committed to delivering high-quality gaming experiences, particularly with the development of the next installment in the “Grand Theft Auto” series, although there are indications of a possible delay in its release.

The gaming industry has faced challenges in consumer spending and revenue growth, prompting companies like Take-Two, Tencent’s Riot Games, Electronic Arts, and Sony Corp to implement workforce reductions. Despite these adjustments, Take-Two continues to navigate the evolving landscape, recently expanding its portfolio through the acquisition of Gearbox, creator of “Borderlands.” As the industry adapts to changing dynamics, Take-Two remains focused on delivering innovative gaming experiences while addressing operational and financial challenges.