Grand Theft Auto publisher Take-Two Interactive said today that it has "approved a cost reduction program to identify efficiencies across its business and enhance [[link]] the company’s margin profile, while still investing for growth," and what that means in practical terms is that it's canceling several games
currently in development and laying off roughly 5% of its workforce.
Word of the layoffs came from an saying Take-Two is "rationalizing its pipeline" and "streamlining its organizational structure." Among the charges it will take in connection to the cuts are $15 to $25 million related to office space reductions, suggesting that some Take-Two offices will be closed [[link]] as part of the cuts.
The actual number of employees being put out of work was not revealed, but in a 2023 annual report Take-Two said it had nearly 11,580 employees worldwide as of March 31, 2023, which would put the number being laid off at a little under 600. This will be the second round of layoffs in just over a year at Take-Two: In March 2023, following "," Take-Two laid off an unknown number of employees from its Private Division publishing label and other divisions.
Take-Two reported $1.3 billion in net bookings in its most recent financial quarter and expects total net bookings of $5.25 to $5.3 billion for its 2024 fiscal year. That's a lot of money, although apparently not enough to prevent laying off hundreds of people. And while there will be even more money—a lot more money—when Grand Theft Auto 6 comes out in 2025 or '26 or whenever, that won't be enough either.
As of early February there had been since the start of 2023, and 2024 [[link]] has shown no signs of slowing down. Since then we've seen hundreds more layoffs from studios including , , , , and more.
Take-Two declined to comment on the layoffs and cancellations. The company's next financial report will take place in May, and may shed more light on the extent of the cuts.