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Take-Two plans to lay off 5 percent of its employees by the end of 2024

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Take-Two Interactive plans to lay off 5 percent of its workforce, or about 600 employees, by the end of the year, as reported in an SEC filing Tuesday. The studio is also canceling several in-development projects. These moves are expected to cost $160 million to $200 million to implement, and should result in $165 million in annual savings for Take-Two. 

As the owner of Grand Theft Auto and the parent company of Rockstar Games, 2K, Private Division, Zynga and Gearbox, Take-Two is a juggernaut in the video game industry. It reported $5.3 billion in revenue in 2023, a nearly $2 billion increase over the previous year. Just a few weeks ago, Take-Two agreed to purchase Gearbox, the studio responsible for Borderlands, for $460 million. The company is preparing to release Grand Theft Auto VI in 2025, a move that should bring in billions on its own.

Take-Two instituted a round of layoffs in 2023 across Private Division — the indie label behind Kerbal Space Program, The Outer Worlds and Rollerdrome — and other in-house studios. 

An estimated 8,800 people in the video game industry have lost their jobs in 2024 so far, and a total of 10,500 industry employees were laid off in 2023. These are, depressingly, record-breaking figures. Sony laid off about 900 people at PlayStation in February; Microsoft fired about 1,900 workers across its gaming division in January; Riot Games let go more than 500 people that same month — and these are just some of the most recent AAA layoffs. Take-Two is now at the head of this list.

Take-Two executives have been hinting at a "significant cost reduction program" coming this year, but before today, they deflected questions about mass layoffs. In March, CEO Strauss Zelnick said on an investor call, "The hardest thing to do is to lay off colleagues and we have no current plans."

This article originally appeared on Engadget at https://ift.tt/Bn9Ie2T

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