Grand Theft Auto publisher Take-Two will lay off 5% of its workforce and cancel games in development as part of a plan to reduce costs.
The publisher said the move would cost it between $160 million to $200 million. It said expenses would include $120 to $140 million from cancelled projects, and $25m to $35m in employee-related costs. A further $15 million to $25 million would go to office space reductions.
Take-Two anticipates $165 million in annual cost savings following the layoffs and cancellations.
The publisher did not specify which studios would be impacted by the cuts. It simply said it would be “rationalising its pipeline” and “streamlining its organisational structure”.
Lowered forecasts
In its Q3 fiscal results, Take-Two said it employed 8,894 development staff. The company reported net revenue of $1.36 billion and a $92 million loss during the period. It also revised its guidance, lowering revenue projections and increasing loss forecasts.
Just last month, the publisher announced it would acquire Borderlands developer Gearbox in a $460 million deal, with Take-Two picking up the company’s three US and Canada offices.
In 2022, the company acquired mobile games publisher Zynga for $12.7 billion. In its Q3 financials, Take-Two said it had 18 mobile titles in development, including Zynga’s Game of Thrones: Legends and Star Wars Hunters.
Take-Two is the latest games company to announce layoffs. Earlier today, it was reported UK publisher Kwalee would cut up to 10% of its workforce, while the likes of Sega, Wildlife Studios, 505 Games and EA have also cut staff in recent months.
