Take-Two Interactive announces major layoffs and halted projects

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"Layoffs Announcement"

Take-Two Interactive, renowned producer of ‘Grand Theft Auto’, has announced stringent cost-cutting measures, which translate into an elimination of approximately 600 jobs, or 5% of their workforce. The budget cut will also lead to a halt in several ongoing developmental projects.

The company has officially reported its downsizing strategy to the Securities and Exchange Commission (SEC), expecting it to be fully implemented by the end of 2024. With these measures, the company intends to streamline operations, manage workforce recruitment, and reduce operational costs.

Take-Two’s approach aligns with industry trends where other gaming giants such as EA, Microsoft Gaming, Riot Games, and Epic Games have also initiated layoffs. This widespread redundancy has not only caused community unrest but has sparked questions about the future of the gaming industry’s labor force.

In February, despite mixed quarterly earnings, Take-Two’s CEO, Strauss Zelnick, assured that there were no immediate plans for layoffs.

Take-Two Interactive’s stringent downsizing strategy

He emphasized the company’s focus on cost efficiency, directing expenditures towards marketing, third-party charges, and vendor expenses instead of workforce reductions.

Zelnick expressed his intention to channel the bulk of the company’s efforts and funds into areas that drive growth, such as marketing, third-party collaborations, and managing vendor costs as part of their supply chain strategy. He reiterated, layoffs were not part of their immediate agenda.

Take-Two, known for its efficiency, aims to be the most cost-effective company in the entertainment business. They are committed to building popular games like ‘Grand Theft Auto’, ‘Red Dead Redemption’, and ‘NBA 2K’ attentively and at low costs.

The current cost-cutting measures are projected to result in charges between $160 and $200 million. This derives from around $120-$140 million related to discontinued projects, $25-$35 million due to severance and related costs and $15-$25 million from reduced office space.

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