Friday, May 24, 2024

Major Job Cuts Loom at Take-Two Interactive as Firm Plans to Lay Off 5% of Staff by 2024

Take-Two Interactive, a titan in the video game industry and owner of high-profile brands such as Grand Theft Auto, has announced a reduction of approximately 5 percent of its workforce. This decision, outlined in a recent SEC filing, entails the termination of around 600 jobs by the end of 2024, alongside the cancellation of several projects in development.

In a strategic move anticipated to save $165 million annually, Take-Two Interactive is set to incur costs between $160 million and $200 million to implement these layoffs and project cancellations. The company, which boasts a robust portfolio including Rockstar Games, 2K, Private Division, Zynga, and Gearbox, reported a significant revenue spike to $5.3 billion in 2023—an increase of nearly $2 billion from the previous year.

Recently, Take-Two has expanded its holdings by acquiring Gearbox, the creators of the popular Borderlands series, for $460 million. This acquisition precedes the highly anticipated 2025 release of Grand Theft Auto VI, expected to significantly boost revenue.

This round of layoffs isn’t the company’s first; in 2023, Take-Two made cuts across several internal studios including Private Division, known for games like Kerbal Space Program and The Outer Worlds. These layoffs are part of a broader trend within the gaming industry, which has seen a disturbing increase in job losses. To date, the industry has shed over 8,800 positions in 2024, following 10,500 layoffs the previous year, marking a record high in unemployment within this sector.

Top companies such as Sony and Microsoft have also announced major layoffs earlier this year, reflecting a wave of cost-cutting across the industry. Despite previous statements from Take-Two CEO Strauss Zelnick emphasizing the difficulty of layoffs and indicating no immediate plans for such measures, the reality of the company’s restructuring has now been publicly acknowledged.

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