Take-Two Interactive to Make Nearly 600 Employees Redundant
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As part of a cost-cutting programme, Take-Two Interactive will lay off five per cent of its workforce. This equates to around 580 employees. Some projects will also be cancelled.
Take-Two Interactive has announced a cost reduction program. The plan is expected to be largely completed by the end of this year and will reduce the company's workforce by around five per cent. In its last annual report (March 2023), the publisher employed 11,580 people, so the number of redundancies will be around 580. Furthermore, Take-Two is streamlining its pipeline by cancelling several projects in development and its organisational structure, which will also reduce future hiring needs. In March 2023, the company had already made redundancies at Private Division and Firaxis.
The board wants to "identify efficiencies across its business and enhance the Company's margin profile, while still investing for growth." The publisher expects the total cost of the cost-cutting programme to be between 160 million and 200 million dollars. It expects to achieve annualised savings of more than 165 million dollars related to the cost reduction programme. Excerpt from the SEC filing: "The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and approximately $15 million to $25 million related to office space reductions. (...) The Company expects $40 million to $60 million of the total charges to result in future cash expenditures." Take-Two recently announced the acquisition of Gearbox Software from Embracer Group for 460 million dollars.
Subsidiaries of Take-Two Interactive are 2K Games, Private Division, Rockstar Games, and Zynga. The biggest project that Take-Two Interactive and Rockstar Games are working on is Grand Theft Auto 6, which according to unconfirmed reports is due for release in 2025 or 2026. There have also been several unconfirmed rumours that 2K Games is working on a football game with FIFA.
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