Take-Two Interactive is laying off about 5% of its workforce, or about 579 workers, and canceling several projects, the GTA 6 publisher announced in a new filing. The news follows CEO Strauss Zelnick's statement that the publisher has “no plans” to lay off staff amid a planned cost-cutting program.
In the filing, Take-Two said it was “eliminating certain projects in development and streamlining its organizational structure,” including laying off workers. Take-Two said it expects to incur total charges of between $160 million and $200 million, of which $120 million to $140 million is related to divestitures.
It's a plan that has been in the works since at least February. At that time, Zelnick talked about the cost-cutting plan“We haven't determined that yet. I just note that our biggest expense is actually marketing. We think we can optimize that. We also have expenses third-party fees, software, others.” suppliers, service offerings and we always find opportunities there. The hardest thing is to lay off colleagues and we have no current plans.”
Take-Two has previously stated that it has made “right-sizing” of its business and that it is expected to be in “growth mode” going forward partly due to the expected release of GTA 6 in 2025. Elsewhere, Take-Two recently acquired Gearbox from Embracer Corporationis in the process of confirming that a new Borderlands game is in development.
In 2022, Take-Two completed a multi-billion dollar merger with Zynga. But at the end of 2023, Take-Two is said to be having difficulty in the mobile market due to the acquisition was “expensive and belated.”
Meanwhile, the gaming industry is already facing layoffs in 2024, affecting publishers including EA, PlayStation, Xbox and Riot. Take-Two said its own cost reduction plan will be completed by December 31, 2024.
Kat Bailey is IGN's News Director and co-host of Nintendo Voice Chat. Have a tip? Send her a direct message at @the_katbot.
