GTA Maker Take-Two to Cut 5% of Workforce

Take-Two Interactive Software, the powerhouse behind the iconic Grand Theft Auto franchise, has announced plans for significant workforce reductions and project cancellations as part of a cost-saving initiative.

This move, aimed at trimming approximately 5% of its staff, equating to roughly 600 employees, underscores a broader trend in the gaming industry marked by recent mass layoffs.

Take-Two’s downsizing effort has financial implications. The company is bracing for expenses of up to $200 million, a significant portion of which will be from shelved projects, around $140 million. An additional $35 million will be attributed to employee-related costs, painting a stark financial picture.

The game studio’s decision to streamline operations follows in the footsteps of other industry giants, including Unity Software Inc., Riot Games, and Microsoft Corp.’s gaming division, grappling with market uncertainties post-pandemic.

Despite boasting a workforce of 11,580 full-time employees as of its last fiscal year, Take-Two’s move toward restructuring is indicative of a risk-averse approach pervading the gaming landscape. Executives cite the formidable costs and lengthy development cycles associated with creating new games as driving factors behind this strategic shift.

Notably, the impending release of Grand Theft Auto VI in 2025 looms large as one of the most anticipated gaming events in recent memory, promising substantial revenue potential.

Additionally, while Take-Two’s recent acquisition of Gearbox Entertainment for $460 million suggests a broader corporate strategy amidst industry-wide consolidation efforts, concerns persist regarding the synergy between such acquisitions and subsequent workforce reductions.

Despite Techopedia’s efforts to obtain comments from Take-Two Interactive Software on these events, we have yet to receive a response from the game maker. We will continue to seek their input and update our readers accordingly.