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Take-Two Interactive, the parent company of 2K Games and Grand Theft Auto maker Rockstar Games will lay off about 5% of its workforce and cut some projects as part of a cost-reduction plan, the company said on Tuesday.
The workforce reduction means about 600 employees will lose their jobs. Take-Two said it expects to see about $165 million in annual cost savings as a result. At last count, in March 2023, the company had about 11,580 full-time workers.
The canceled projects will amount to a $140 million write-off, according to Reuters. Getting rid of the employees will cost Take-Two another $35 million.
Take-Two aren’t the only ones to be trimming costs and workforce as giants like Electronic Arts and Sony. The gaming industry, frequently buffeted by layoffs and project cancellations, have gone through a noticeably turbulent two year stretch. Take-Two will also reduce office space as part of the cost-saving move, as well.
The next installment in the Grand Theft Auto franchise is in development and has been formally announced, with a launch window of 2025. Some reports now suggest the game could be delayed until 2026.
Take-Two acquires the company behind Borderlands series
The job losses come just a month after Take-Two announced the acquisition of The Gearbox Entertainment Company Inc. The transaction was valued at $460 million, with 2K’s internal development team being bolstered by talent.
Gearbox and 2K are now in active development for the next game in the popular loot-shooter Borderlands series as a result of the deal.
Featured Image: Via Victoria on Pixabay
