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Take-Two Interactive, which is the owner of Rockstar Games and 2K Games, along with being the publisher of game series such as Grand Theft Auto, Red Dead Redemption, NBA 2K, and more are planning to fire 5% of its total workforce and cancel multiple projects to save costs.
First reported by Bloomberg UK, Take-Two Interactive have decided to follow what the rest of the gaming industry is doing, such as Microsoft, Sony, EA, and more, and will be laying off quite a few staff members; in total, they will be laying off 5% of staff, which results in nearly 600 people in total and will cancel Projects valued at around $140 Million.
This comes from an SEC filing today. Take-Two also expects a total of $25 Million to $35 Million in total staff severance packages, and employee related costs, and up to $25 Million in office space reductions. In total, they expect this to cost them a total of around $200 Million.
In February 2023, Take-Two Interactive announced a Cost Reduction program in a way to reduce $50 Million in Annual Spending, which Layoffs were part of the plan.
In the latest earnings call, Take-Two Interactive once again mentioned another Cost Reduction Program that they were putting together to save costs and maximise profit margins, but when IGN approached Take-Two, the CEO, known as Strauss Zelnick, said they have no plans to fire people but were still working out the specifics of the Reduction Program.
This comes just months after Rockstar Games revealed Grand Theft Auto VI, which for sure will be the biggest entertainment piece to ever release, and less than a month after Take-Two Interactive revealed that they will be purchasing the studio that made the Borderlands Series, Gear Box Entertainment for $460 Million, which will be finalised by June 2024.
In 2022, Take-Two also purchased Mobile Gaming Studio, Zynga for $12 Billion, which hasn’t gone as they had hoped.
Take-Two Interactive keeps bragging about how much money they are making from players purchasing Shark Cards and other Micro Transactions so we’re pretty certain they aren’t short of cash.
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