Take-Two Interactive Software will lay off about 5% of its workforce, or about 600 people, as the video game industry extends more than two years of layoffs, the publisher of the “Grand Theft Auto” series said Tuesday. Announced.
The company also plans to retire several projects in development as part of its cost-cutting plan, with total costs expected to reach up to $200 million.
The name of the canceled project was not disclosed.
Take-Two said the move is expected to save more than $165 million annually.
The company's shares rose 1% in after-hours trading. It has fallen nearly 10% since the beginning of this year.
The move joins Take-Two and Tencent-owned Riot Games, Electronic Arts and Japan's Sony in cutting jobs this year, citing uncertainty in consumer spending after a pandemic-era boom.
Research firm Newzoo says PC and console gaming revenue growth will remain below pre-pandemic levels through 2026 as gamers spend less time playing.
Canceled projects are expected to account for up to $140 million of total costs, with severance and employee-related costs expected to reach up to $35 million. Take-Two will also reduce some of its office space as part of the move.
The company, which had 11,580 full-time employees as of March 2023, signed a $460 million discount deal for Gearbox from the maker of Borderlands last month, amid soaring prices for manufacturers of well-known titles due to consolidation. We agreed to acquire the company.
Take-Two is focused on developing the next installment in the best-selling Grand Theft Auto series, but some reports suggest the title could be pushed back from 2025 to 2026.
