Take-Two Interactive is set to reduce its workforce by 5 percent, equating to approximately 600 staff members, by year’s end, according to an SEC filing on Tuesday. Additionally, the company plans to terminate several projects currently in development. These decisions are anticipated to incur costs between $160 million and $200 million, while projected to generate annual savings of $165 million for Take-Two.
As a leading entity in the video game sector and the parent company of Rockstar Games, 2K, Private Division, Zynga, and Gearbox, Take-Two Interactive commands a significant presence. The company reported revenues of $5.3 billion in 2023, marking an increase of nearly $2 billion from the previous year. Recently, Take-Two completed the acquisition of Gearbox, the creators of Borderlands, for $460 million. Looking ahead, the company is gearing up for the 2025 release of Grand Theft Auto VI, which is expected to substantially boost its revenues.
In 2023, Take-Two initiated layoffs across Private Division—the independent label known for titles such as Kerbal Space Program, The Outer Worlds, and Rollerdrome—as well as other internal studios. This year, approximately 8,800 individuals in the video game sector have been let go, following 10,500 job losses in 2023. These figures set new highs for the industry.
Among notable layoffs, Sony dismissed about 900 employees from PlayStation in February. Riot Games also terminated more than 500 positions in the same period. These major reductions underscore a challenging trend, with Take-Two prominently featured among these significant layoffs.
Take-Two executives had previously alluded to a significant cost-cutting initiative expected this year, yet they had avoided directly addressing the possibility of extensive layoffs until now. In March, during a call with investors, CEO Strauss Zelnick expressed the difficulty of job reductions, stating, “The hardest thing to do is to lay off colleagues and we have no current plans.”
Featured image credit: Take-Two Interactive
