The parent firm of 2K and Rockstar Games is going to axe'several' in-development products and lay off approximately 579 employees.
The video game developer Take-Two Interactive, known for titles like Grand Theft Auto, NBA 2K, and Bioshock, has revealed cost-cutting measures that would result in the termination of "approximately five percent" of its global workforce and the cancellation of numerous ongoing projects.
"Streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs," the company stated in an SEC filing made public on Tuesday. Take-Two claims that the implementation of their "cost reduction program," which is intended to save the business more than $165 million annually, will cost up to $200 million. It is anticipated that the downsizing initiatives would be "largely complete" by December 31st, 2024.
Approximately 579 of the 11,580 employees that Take-Two reported in its most recent impact report would be affected by a 5% employment decrease. whose teams will be impacted and whose projects will be abandoned have not been disclosed by the corporation. Grand Theft Auto VI, the eagerly awaited game that is scheduled to release in 2019, is probably unaffected.
The gaming business has been severely damaged by widespread layoffs since 2023, and this news from one of the largest gaming corporations in the world is just one more setback. Gearbox, the company behind Borderlands, is presently being acquired by Take-Two from Embracer Group for a sum of $460 million.