Take-Two Interactive, the powerhouse behind Grand Theft Auto, has recently made headlines with its announcement of a workforce reduction plan. The company plans to cut approximately 5 percent of its employees, equating to around 600 people.
This decision comes with the cancellation of certain in-development game projects, although specific details remain undisclosed at this time.
Take-Two estimates that these workforce reductions will lead to annual savings of about $160 million. This cost-cutting measure is expected to be fully implemented by December 31, 2024.
This development follows Take-Two's recent acquisition of Gearbox, the studio responsible for the popular Borderlands franchise. The acquisition deal, valued at $460 million, signals Take-Two's strategic growth plans within the gaming industry.
Take-Two's CEO, Strauss Zelnick, had hinted at cost reduction initiatives earlier this year. While layoffs were not confirmed back then, the latest announcement reflects the company's ongoing efforts to streamline operations and enhance profitability.
Since the implementation of a previous cost reduction program by Take-Two last year, layoffs have become increasingly common in the gaming sector. The industry saw a significant number of job losses in 2023, with an estimated 9,000 layoffs reported. Unfortunately, this trend appears to persist in 2024, with already 8,800 layoffs recorded this year according to data from Game Industry Layoffs.
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