After various industry giants announced layoffs in recent months, Take-Two Interactive was also hit. As the US publisher admitted in a recent announcement, the workforce will be reduced by five percent.
Layoffs and cost-cutting measures in the video game industry will continue in 2024. The next heavyweight has now hit the US publisher Take-Two Interactive.
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As the parent company of Rockstar Games and Zynga admitted in a recent statement, extensive restructuring will be undertaken in the next few months. The measures are expected to be completed by December 31, 2024 and will reduce ongoing costs by around $160 million annually.
According to Take-Two Interactive, the restructuring will result in both layoffs and discontinued projects.
Around 600 employees lose their jobs
Regarding the layoffs, Take-Two Interactive added that the company will reduce its workforce by five percent. A total of 600 employees are affected by the layoffs. The job cuts are part of an internal cost-cutting measure that will also result in an unspecified number of games being discontinued.
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Take-Two Interactive also stated that the current measures will result in write-downs of almost $200 million. According to those responsible, around 140 million US dollars are attributable to unannounced projects that will be discontinued as a result of the cost-cutting measures.
Austerity measures part of a long-term plan
Back in February, Take-Two Interactive announced that the company would like to reduce its running costs. However, Strauss Zelnick, the company's CEO, pointed out that no layoffs are planned.
So now the proverbial roll backwards, which will cost 600 employees their jobs.
The timing of this announcement could cause criticism. The layoffs come just shortly after the “Borderlands” makers took over Gearbox Software. According to Take-Two Interactive, the purchase of the “Borderlands” makers cost $460 million.
It is currently unclear which divisions and studios of the publisher will be affected by the layoffs and to what extent. Take-Two Interactive includes, among others, 2K Games, 2K Sports, Gearbox Software, Zynga, the indie label Private Division and of course the “GTA” creators of Rockstar Games.
Source: Bloomberg
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