Take-Two Announces Layoffs While Canceling Multiple In-Development Projects – IGN

Take-Two Interactive is laying off around 5 pecent of its workforce, or about 579 workers, and canceling several probjects, the GTA 6 publisher announced in a new filing. The news follows claims from CEO Strauss Zelnick that the publisher had “no plans” for layoffs amid its planned cost reduction program.

In the filiing, Take-Two said it is “eliminating several projects in development and streamlining its organizational structure,” which includes laying off workers. Take-Two said it expects to incur between $160 and $200 million in total charges, with $120 million to $140 million related to title cancellations.

It’s a plan that’s been in the works since at least February. At the time, Zelnick said of the cost reduction plan, “We haven’t put any meat on the bones of that yet. I would just note that our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans.”

Take-Two had previously claimed that it was done “right-sizing” its business and that it expected to be in “growth mode” going forward in part due to the expected release of GTA 6 in 2025. Elsewhere, Take-Two recently acquired Gearbox from the Embracer Group, in the process confirming that a new Borderlands game is in development.

In 2022, Take-Two completed a multi-billion dollar merger with Zynga. But as of late 2023, Take-Two was said to be struggling with mobile due to its acquisition being “expensive and late.”

In the meantime, the games industry has been racked by layoffs in 2024, impacting publishers including EA, PlayStation, Xbox, and Riot. Take-Two says its own cost reduction plan is set to be complete by December 31, 2024.

Kat Bailey is IGN’s News Director as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.