Take-Two, the creator of Grand Theft Auto, to lay off 5% of workforce and cancel new projects

Take-Two Interactive Software, the powerhouse behind the iconic “Grand Theft Auto” franchise, has made a bold move by announcing a significant reduction in its workforce. The company revealed plans to cut approximately 600 employees, which accounts for about 5 per cent of its total workforce. This decision comes amidst a larger industry trend of job reductions that has been ongoing for over two years.

In addition to the layoffs, Take-Two also disclosed that it will be canceling several ongoing projects as part of its cost-reduction efforts. While specific details about the canceled projects were not provided, the company expects these measures to result in total charges of up to $200 million. The breakdown indicates that the canceled projects could contribute as much as $140 million to these charges, with employee-related costs making up the rest.

The gaming sector as a whole has been facing challenges, with companies like Tencent’s Riot Games, Electronic Arts, and Sony Corp also implementing workforce reductions this year. These actions are a response to the changing economic landscape post-pandemic, which has led to a decrease in consumer spending and slower growth in PC and console gaming revenues.

Despite these challenges, Take-Two recently made a significant acquisition by purchasing Gearbox, the studio behind the popular “Borderlands” series, for $460 million. This move highlights the ongoing consolidation in the gaming industry, which is driving up acquisition costs for successful titles.

While the company remains focused on developing the next installment of “Grand Theft Auto,” there are reports suggesting a possible delay in the game’s release from 2025 to 2026. Take-Two’s strategic decisions reflect its commitment to adapting to the evolving gaming landscape and ensuring long-term success in the industry.