Take-Two, GTA’s parent company, announces layoffs and cancellation of several games

Layoffs in the video game industry continue unabated. This time it’s time Take-Two Interactive, the parent company of Rockstar Games, 2K and Zynga. Corporation will give up 5% of its global workforce and will exclude several games in development, according to a document filed with the US Securities and Exchange Commission (SEC).

Take-Two did not specify which teams would be affected by this staff reduction or which games would be cancelled. To the peace of mind of many, most likely, development GTA 6 this measure will not affect. In fact, if the latest rumors are to be believed, Rockstar will need more hands on deck to finish the game on time.

According to the firm led by Strauss ZelnikThe Board of Directors of Take-Two Interactive has approved a cost reduction program that will be implemented until the end of 2024. “As part of these efforts, the company is streamlining its portfolio, eliminating several projects in development and streamlining its organizational structure, which will eliminate positions in the workforce and reduce future hiring needs,” it said.

Although the document does not indicate the specific number of employees who will be left without work, It is expected that there will be about 580 of them.. In 2023, Take-Two Interactive reported that it had 11,580 full-time employees, 77% of them in product development, and that 61% of its total workforce was located outside the United States.

The company that created the sagas Grand Theft Auto, Red Dead Redemption, NBA 2K, BioShock, Mafia And Max Payneamong other things, plans to complete its cost reduction plan by December 31, 2024.

Take-Two joins wave of layoffs in video game industry

In a document announcing cost cuts, Take-Two Interactive states that will allocate from 160 to 200 million dollars for this.. The company estimates that between $120 million and $140 million of that amount will be used to cover costs associated with games that will be cancelled. The number is not small, no doubt.

We’ll have to see if there are any early signs of which titles will end up in the trash. It is worth clarifying that the parent company of Rockstar, 2K and Zynga has no plans to stop investing. In fact, the SEC filing talks about “improving margin profile while continuing to invest in growth.”

In fact, at the end of March, Take-Two Interactive announced the acquisition Gearbox Entertainmentsupervised study Borderland, Duke Nukem And Tiny Tina. The agreement between Strauss Zelnick’s firm and Embracer Group is valued at $460 million.

Layoffs in the video game industry have grown noticeably in recent years. There were 8,500 in 2022 and 10,500 in 2023. The outlook for this year is even more challenging when you consider that 8,800 have already been registered in the first three and a half months of 2024. Among the most notable in the current calendar are the announcements of Riot Games and Microsoft Gaming (Activision Blizzard, Xbox and Bethesda).