It has been recently disclosed that Take-Two Interactive, the parent company of Rockstar Games, is set to lay off around 500 employees. Additionally, the publisher is halting projects in order to regain financial stability. Despite high expectations for Grand Theft Auto 6 to become the highest-grossing game ever, the company plans to cut 5% of its workforce.
In February, the CEO of Take-Two mentioned a forthcoming ‘cost reduction program’. At the time, there were no indications of staff layoffs. However, just a few weeks later, the layoffs are becoming a reality. This news comes shortly after Take-Two’s acquisition of Gearbox from the Embracer Group for nearly half a billion dollars.
Unexpected Developments
Rockstar’s Grand Theft Auto 6 is nearing completion, with the game currently in its final stages of development. The company’s decision to mandate a return to office generated controversy but was implemented to prevent leaks and ensure quality as GTA 6 nears release. While a release could be less than a year away, fans are eagerly awaiting the highly anticipated game.
Last year, Take-Two Interactive reported having 11,580 employees. With a 5% reduction, between 500 and 600 employees could be affected by the current layoffs. The ‘cost reduction program’ is expected to save the company $200 million, covering both employee expenses and project cancellations.
The specific projects being scrapped have not been disclosed, but with numerous studios under Take-Two, there are various possibilities. However, the layoffs are not likely to impact the development of Grand Theft Auto 6.
These layoffs are the latest in a series of industry-wide job cuts, with around 20,000 workers losing their jobs since the beginning of 2023. Companies like Electronic Arts and Activision Blizzard have also recently undergone significant layoffs.
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