Video game publishing giant Take-Two Interactive is laying off 5% of its workforce, approximately 600 employees, and canceling several projects currently in development as part of a cost-cutting initiative across the company behind “Grand Theft Auto.”
Take-Two filed paperwork with the SEC Tuesday regarding the downsizing, which it says will be “largely complete” by the end of 2024.
“As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs,” per Take-Two’s filing.
Take-Two’s cuts come on the heels of a slew of layoffs throughout the gaming industry, including reductions at Sony’s PlayStation, EA, Microsoft Gaming, Riot Games and Epic Games.
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In February, Take-Two announced it was working on a “significant” cost reduction plan following mixed earnings results for its October-December 2023 quarter. At the time, CEO Strauss Zelnick said there were “no current plans for layoffs.”
“Our biggest line item expense was marketing, so we do have the opportunity to optimize many expenses that don’t involve our headcount: marketing and third party expenses, vendor charges, and the like, can still be optimized,” Zelnick told Variety. “We’re a big company, so we have always prided ourselves on being the most efficient company in the entertainment business.”
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Take-Two estimates between $160-$200 million in charges as a result of its cost-cutting plan, and expects $40 to $60 million of that total in future cash expenditures.
According to Take-Two, the total charge will amount to roughly $120-$140 million in canceled games, $25-$35 million in employee severance and related costs and $15-$25 million related to office space reductions.
