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GTA 6 Publisher Take-Two Interactive Announces Layoffs And Project Cancellations

GTA 6 Publisher Take-Two Interactive Announces Layoffs And Project Cancellations

After reporting a staggering $8.5 billion revenue from GTA 5 and initially stating it had “no current plans” for layoffs, GTA 6 publisher Take-Two Interactive has announced significant workforce reductions and project cancellations

According to Bloomberg, Take-Two disclosed in an SEC filing its intention to reduce its workforce by 5% and cancel several projects to achieve annual savings exceeding $165 million. However, the restructuring plan will incur charges of up to $200 million, with a substantial portion, up to $140 million, attributed to canceled projects. Additionally, $25 million to $35 million will cover employee severance and related expenses, with Take-Two also downsizing its office space.

This turnaround is surprising, given Take-Two CEO Strauss Zelnick’s statement in February indicating no plans for layoffs. The news is particularly disheartening considering GTA 5’s immense success, generating over $8.5 billion since its 2013 release.

While GTA 6 is unlikely among the canceled projects, the reduction in workforce could potentially impact its development timeline. Recent reports suggested a delay in GTA 6’s release from 2025 to 2026 due to development challenges, and layoffs may exacerbate these issues.

Despite Take-Two’s acquisition of Borderlands developer Gearbox for $460 million in March and the anticipated success of GTA 6, the company’s actions contribute to a wave of layoffs across the video game industry following the pandemic boom. Major players like Microsoft, EA, Sony, Riot, and others have also announced layoffs in recent months.