Take-Two Interactive has recently revealed that it will be laying off 5% or about 580 of its employees.
This information was officially published by Reuters and Bloomberg. If you are interested in the state of the video game industry, you can check out our other articles here.
Take-Two Interactive lays off 580 employees and cancels several internal projects
Reuters and Bloomberg have reported that the parent company of 2K, The Gearbox Entertainment Company, Private Division, Zynga, and Rockstar Games will lay off 5% of its workforce.
According to the latest Securities and Exchange Commission (SEC) data, Take-Two Interactive employed 11,580 permanent employees before the layoff announcement. This means about 580 employees will be in danger of being laid off.
Several projects under development will also be canceled as part of a cost reduction plan that is expected to result in a total cost of up to US$200 million. These specific canceled projects were not mentioned.
According to Take-Two Interactive, the move will result in annual cost savings of over $165 million.
Canceled projects will account for as much as $140 million of the total cost and severance and employee-related costs are expected to reach up to $35 million. Take-Two Interactive will also reduce some of their office space.
In February 2024, Take-Two Interactive CEO Strauss Zelnick told IGN that this latest cost reduction plan would not involve layoffs, but further details were still not confirmed at the time.
