Take-Two Interactive, the publisher behind the highly anticipated Grand Theft Auto VI, has announced a sweeping cost-reduction plan.
The company will lay off about 5% of its workforce, roughly 580 employees, and cancel several in-development projects, aiming to streamline operations and reduce expenses.
The total cost of these changes is estimated between $160 million to $200 million, with $120 million to $140 million allocated to scrapped projects and up to $35 million for severance and related employee costs. Office space reductions will account for another $15 million to $25 million in expenses.
Despite these cuts, Take-Two remains on solid ground financially, reporting $1.2 billion in net bookings last quarter, marking a 20% increase year-over-year. These adjustments come amid broader organizational changes and a notable acquisition spree, including a recent $460 million deal to acquire Gearbox Entertainment, known for the Borderlands series.
The strategic moves are part of Take-Two’s efforts to bolster its portfolio, which includes upcoming titles like BioShock and Mafia, as well as Judas, a new project from Ken Levine’s Ghost Story Games.
This pivot in strategy reflects the tough decisions companies sometimes must make to stay competitive and profitable. It’s a reminder of the dynamic nature of the gaming industry, where even giants like Take-Two must continuously evaluate and adjust their strategies to navigate economic pressures and shifting market dynamics.
