Alongside the job cuts, Take-Two is also cancelling multiple projects currently in development.
Grand Theft Auto publisher Take-Two Interactive said today 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," and what that means in practical terms is that it's canceling several games currently in development and laying off roughly 5% of its workforce.
Word of the layoffs came from an SEC filing saying Take-Two is "rationalizing its pipeline" and "streamlining its organizational structure." Among the charges it will take in connection to the cuts are $15 to $25 million related to office space reductions, suggesting that some Take-Two offices will be closed as part of the cuts.
The actual number of employees being put out of work was not revealed, but in a 2023 annual report Take-Two said it had nearly 11,580 employees worldwide as of March 31, 2023, which would put the number being laid off at a little under 600. This will be the second round of layoffs in just over a year at Take-Two: In March 2023, following "exponential growth in recent years," Take-Two laid off an unknown number of employees from its Private Division publishing label and other divisions.
Take-Two reported $1.3 billion in net bookings in its most recent financial quarter and expects total net bookings of $5.25 to $5.3 billion for its 2024 fiscal year. That's a lot of money, although apparently not enough to prevent laying off hundreds of people. And while there will be even more money—a lot more money—when Grand Theft Auto 6 comes out in 2025 or '26 or whenever, that won't be enough either.
As of early February there had been more than 16,000 layoffs in the games industry since the start of 2023, and 2024 has shown no signs of slowing down. Since then we've seen hundreds more layoffs from studios including Relic, Certain Affinity, Sega, EA, and more.
Take-Two declined to comment on the layoffs and cancellations. The company's next financial report will take place in May, and may shed more light on the extent of the cuts.
