Grand Theft Auto Publisher Take-Two Interactive Announces Layoffs
In a move to streamline operations and cut costs, Grand Theft Auto publisher Take-Two Interactive is reportedly set to lay off approximately 5% of its workforce, equating to around 600 employees. This decision comes as part of a broader cost-cutting strategy that also includes the cancellation of several projects currently under development.
The announcement was made official when Take-Two filed paperwork with the Securities and Exchange Commission (SEC). The downsizing process is expected to be largely complete by the end of 2024.
Take-Two’s decision to downsize follows a trend in the gaming industry, with major players such as Sony’s PlayStation, EA, Microsoft Gaming, Riot Games, and Epic Games also announcing reductions in their workforce. Despite prior claims of no plans for layoffs, Take-Two’s CEO Strauss Zelnick assured that there were opportunities to optimize expenses that do not involve headcount.
Take-Two estimates charges ranging from $160 to $200 million, with future cash expenditures expected to be between $40 to $60 million. Despite these challenges, the company has recently invested in acquiring Gearbox and is working on the highly anticipated ‘GTA 6’ game, projected to be a huge success.
As the gaming industry continues to evolve and adapt to changing market conditions, reorganizations and layoffs seem to be a common theme among industry leaders. Only time will tell how these changes will impact the future of gaming and the careers of those affected by these layoffs. Stay tuned for more updates on this developing story.
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