'Grand Theft Auto' maker Take-Two to let
go 5% of staff, scrap some projects
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[April 17, 2024]
(Reuters) -Take-Two Interactive Software will lay off about 5% of
its workforce, or around 600 employees, the publisher of the "Grand
Theft Auto" franchise said on Tuesday, as the video-gaming industry
extends its more than two-year long job cuts.
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NBA 2K22 and Grand Theft Auto 5 by Take-Two Interactive Software Inc are
seen for sale in a store in Manhattan, New York City, U.S., February 7,
2022. REUTERS/Andrew Kelly/File Photo |
The
company will also scrap several projects in development as part
of a cost-reduction plan, which is expected to result in total
charges of up to $200 million. It declined to name the projects
that have been canceled .
Take-Two said the move is expected to drive more than $165
million of annual cost savings.
The company's shares were 1% higher in extended trading. They
have fallen nearly 10% so far this year.
The move aligns Take-Two with Tencent-owned Riot Games,
Electronic Arts and Japan's Sony Corp in trimming workforce this
year due to uncertain spending from consumers after the
pandemic-era boom.
PC and console gaming revenue growth is expected to remain below
pre-pandemic levels through 2026 as gamers record fewer hours of
playtime, according to research firm Newzoo.
Canceled projects will account for as much as $140 million of
the total charges, while severance and employee-related costs
are expected to be up to $35 million, it said. Take-Two will
also reduce some office space as part of the move.
The company, which had 11,580 full-time employees as of March
2023, last month agreed to buy "Borderlands" maker Gearbox for
$460 million in a cut-price deal at a time consolidation is
driving up prices for makers of well-known titles.
Take-Two has been focused on the development of the next
installment in the best-selling "Grand Theft Auto" franchise,
but some reports have said the title could be delayed into 2026
from 2025.
(Reporting by Aditya Soni and Christy Santhosh in Bengaluru;
Editing by Shilpi Majumdar and Sriraj Kalluvila)
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