GTA publisher firing over 500 staff

Take-Two Interactive Software Inc., the company known for the Grand Theft Auto video games, has announced plans to reduce its workforce by 5% and discontinue several projects as part of a cost-saving initiative.

According to a filing made on Tuesday, the company anticipates expenses of up to $200 million associated with the downsizing, with approximately $140 million attributed to the cancellation of projects and $35 million allocated for employee-related costs.

Take-Two joins a list of major gaming companies that have implemented significant layoffs this year, including Unity Software Inc., Riot Games, and Microsoft Corp.’s games division.

Industry contraction has prompted executives to adopt a cautious approach to developing new games, given the lengthy timelines and substantial financial investments typically involved.

As of its last fiscal year, Take-Two employed 11,580 full-time workers, translating to a reduction of 579 employees under the 5% reduction plan.

The highly anticipated Grand Theft Auto VI, set to be released in 2025, is projected to become one of the highest-grossing media products in history.

When approached for comment beyond the filing, a company spokesperson declined. During a February earnings call, Take-Two disclosed ongoing efforts related to a “significant cost reduction program.”

In a recent interview with IGN, Chief Executive Officer Strauss Zelnick stated that there are currently no plans for layoffs.

In March, Take-Two finalized an agreement to acquire Gearbox Entertainment from Embracer Group AB for $460 million.

In 2022, the company made a notable acquisition of mobile game company Zynga for approximately $12 billion. However, industry analysts suggest that this investment has not yielded the expected returns, as the mobile games sector experienced a downturn shortly after the acquisition.

Source: MyBroadband