In a significant corporate shake-up, Take-Two Interactive, the publisher behind the highly anticipated “GTA 6,” has announced a comprehensive restructuring plan that involves laying off five percent of its workforce and cancelling several in-development projects. This decision affects approximately 550 of the company’s 11,000 employees and includes the termination of projects worth tens of millions of dollars.
The restructuring details, revealed in a filing with the U.S. Securities and Exchange Commission, indicate that Take-Two anticipates incurring charges between $160 million to $200 million related to this plan. The breakdown includes $120 million to $140 million for cancelled titles, $25 million to $35 million in employee severance and related costs, and $15 million to $25 million associated with reductions in office space.
This move comes despite recent financial successes reported by Take-Two, with net bookings hitting $1.2 billion in the last quarter, marking a 20% increase from the previous year. The decision also contrasts sharply with statements made less than a month ago by CEO Strauss Zelnick, who told IGN that the company had “no current plans” for layoffs. In the last year, Zelnick received $40 million in total compensation.
The layoffs and game cancellations are part of a broader trend within the gaming industry, which has seen numerous developers facing job losses. This pattern raises concerns about job security and the stability of careers within the sector.
Take-Two’s recent acquisition of Gearbox from Embracer Group, which also announced its own restructuring efforts, might suggest potential further consolidations and layoffs in the future.
Among the upcoming releases from Take-Two, titles such as a new “Borderlands” game, a new “BioShock,” and “Judas” from Ken Levine’s Ghost Story Games have been highlighted, though it remains unclear if these projects will be impacted by the current cuts.
The gaming community and industry professionals are calling for more sustainable practices to prevent such widespread layoffs in the future, with discussions around this issue intensifying at events like the Game Developers Conference (GDC).
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