Take-Two has confirmed it is due to lay-off hundreds of members of staff as well cancelling several projects currently in development.
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The Grand Theft Auto publisher filed a SEC report yesterday (April 16) that confirmed the company had “approved a cost reduction program” that will “identify efficiencies across its business and enhance the Company’s margin profile, while still investing for growth”.
Take-Two will do this by cancelling a number of projects currently being developed, reducing office space and firing five per cent of its workforce. In a 2023 report, Take-Two said it had around 11,580 employees, meaning nearly 600 people will lose their jobs as part of this cost-cutting strategy.
The SEC report went on to say Take-Two believes it will save between £20million and £28million thanks to the lay-offs, while the cancelled games will save Take-Two between £96million and £112million.
As reported by PC Gamer, Take-Two reportedly expects total net bookings of around $5.3billion (£4.25billion) for its 2024 fiscal year while the upcoming launch of Grand Theft Auto 6 seems to be a sure-fire success. The teaser trailer broke viewing records when it was first shared in December 2024 and has already inspired a number of recreations, while the likes of ScHoolboy Q and T-Pain are reportedly involved with the game.
Earlier this year, Take-Two CEO Strauss Zelnick said the company had “no current plans” to lay off staff in a bid to save money. “The hardest thing to do is to lay off colleagues,” he added. An unknown number of staff were previously laid off from Take-Two’s Private Division label last year.
Many fans have criticised the cost-cutting plans as “greed”.
Last year, Take Two's CEO Strauss Zelnik's compensation was 42.1 million USD, which was more two and a half times higher than his 2022 salary at "just" over 16 million USD.
It's greed.
Source: https://t.co/qrKbbDnk0D https://t.co/WZ8Z5QURiL
— Anna
(@annacwebs) April 16, 2024
The news from Take-Two is the latest in a long-line of lay-offs in the world of gaming. In January, Microsoft confirmed it was set to lay off 1900 members of staff who work across Xbox and the newly acquired Activision Blizzard while Riot Games laid off over 500 members of staff and cancelled development on all League Of Legends spin-off titles. The following month Disco Elysium developer ZA/UM cut a quarter of its staff.
Hitting out at the number of layoffs across the gaming industry, Larian’s head of production David Walgrave said onstage at the DICE Awards: “There’s an expression in Dutch— ’honesty lasts longest. We don’t make decisions where we think ‘this could make us the most money’ [because] in the long run, building a community, building a playerbase, building games that are actually fun is going to make you the most money, that’s it.”
In other news, Hollow Knight: Silksong has been rated in Australia, suggesting a release date might finally be on the cards.
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