The parent company of Rockstar is reducing costs. This will affect about 579 jobs and cancel several projects that are currently in progress.
Take-Two Interactive, known for creating games such as Grand Theft Auto, NBA 2K, and Bioshock, is cutting costs. They plan to lay off about five percent of their global workforce and cancel several ongoing projects.
The company said in an SEC filing published on Tuesday that it is “streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs.”
Take-Two has announced it will spend up to $200 million on its “cost reduction program.” This plan is designed to save the company more than $165 million each year. The process of reducing staff will mostly be finished by December 31, 2024.
A five percent cut in staff means about 579 of the 11,580 employees reported by Take-Two will lose their jobs. The company has not detailed which groups or projects will be impacted. However, the much-awaited Grand Theft Auto VI, set to release next year, is probably not affected.
This news from a major global gaming company adds to the industry’s challenges, which have seen widespread layoffs starting in 2023. Additionally, Take-Two is buying Gearbox, the creator of Borderlands, from Embracer Group for $460 million.
What we think?
I think the layoffs at Take-Two will be tough for many workers. Losing jobs is always hard. The cut in projects could slow down new game releases.
But, Grand Theft Auto VI is still on track, which is good news for fans. This might save some excitement around the company. Overall, it’s a hard time for the gaming industry, but some big games are still coming.
