Take-Two To Lay-Off 5% Of Workforce, Axe Several In-Development Projects

(RTTNews) - Take-Two Interactive (TTWO), owner of franchises - Grand Theft Auto, NBA 2K, and BioShock, has announced its decision to cut its global work force by around 5 percent or 579 jobs, and scrap several projects in development to save over $165 million annually.

As per an SEC filing, the gaming company said that it is "streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs."

The video game-maker said that it has "approved a cost reduction program to identify efficiencies across its business and enhance the company's margin profile, while still investing for growth."

Take-Two, which had 11,580 full-time employees as of March 2023, said that the canceled projects will account for about $140 million of the total charges, whereas severance and employee-related costs are expected to be up to $35 million.

The cost-reduction and downsizing program to be completed by the end of 2024, will incur charges of up to $200 million, the company stated.

However, the company has not shared any details regarding which teams will be affected or which projects will be dropped. It is expected that Grand Theft Auto VI, to be launched next year, will likely remain unaffected.