Apr 17, 2024 11:05:00

Grand Theft Auto series publisher Take-Two Interactive lays off 5% of its workforce and cancels multiple projects

Take-Two Interactive , which sells the Grand Theft Auto (GTA) series and the Red Dead Redemption series, has announced that it has laid off 579 employees, or 5% of its total workforce. Take-Two Interactive also revealed that it has canceled several projects in development.

Take-Two Interactive Software, Inc. - SEC Filing
https://taketwointeractivesoftwareinc.gcs-web.com/node/30301/html

Take-Two Announces Layoffs While Cancelling Multiple In-Development Projects - IGN
https://www.ign.com/articles/take-two-announces-layoffs-while-canceling-multiple-in-development-projects

Take-Two Interactive, known as the publisher of the Grand Theft Auto series, will lay off 579 employees, or 5% of its total workforce, and cancel several projects, according to a filing with the U.S. Securities and Exchange Commission (SEC). Take-Two Interactive CEO Strauss Zelnick said in the company's third-quarter financial results announced in March 2024 that 'the company has no plans to cut staff as part of its cost-cutting program,' but it appears that there will be staff cuts.

In its filing, Take-Two Interactive explained that it would 'eliminate several projects in development and streamline its organizational structure,' which would allow it to save $160 million to $200 million (approximately 25 billion to 31 billion yen). Of this amount, $120 million to $140 million (approximately 19 billion to 22 billion yen) is expected to be saved by canceling game development projects. Take-Two Interactive's cost reduction program is scheduled to be completed by December 31, 2024.

Take-Two Interactive's cost-cutting program has been underway since at least February 2024, with CEO Zelnick saying, 'We're not yet specific, but I want to say that our largest expense item is marketing. We believe we can optimize that.'

Take-Two Interactive plans to release Grand Theft Auto VI in 2025, and

Embracer Group , which the company acquired in March 2024, announced that it is developing a new Borderlands game.

Take-Two Interactive acquired social gaming company Zynga for $12 billion in 2022, but Bloomberg criticized the acquisition, saying, 'Take-Two Interactive bet on Zynga amid a sluggish mobile gaming market. But the company's expansion into mobile gaming has been costly and slow.'

Even in 2024, job cuts continue in the gaming industry, with major publishers such as Electronic Arts , SIE , Xbox , and Riot Games cutting staff.