Rockstar Games Parent Company Lays Off 5% Workforce, Cancels Games

The gaming industry is going through a rough patch, with several big gaming firms laying off employees as cost-cutting measures. In yet another unfortunate turn of events, Take-Two Interactive announced that will be letting go of 5% of its workforce.

It means that the company will be laying off around 600 employees, similar to what happened in the last few months at other gaming firms, including Epic Games, Riot Games, Microsoft, Sony, and Electronic Arts. Similar situations have also occurred at smaller studios such as Hidden Path Entertainment and Supermassive Games.

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Take-Two Clarifies Why It Had To Lay Off Employees

In a new 8-K SEC filing, Take-Two outlined its cost reduction program. Here’s what the company had to say:

“On April 16, 2024, the Board of Directors of Take-Two Interactive Software, Inc. (the “Company”) approved a cost reduction program (the “Plan”) to identify efficiencies across its business and enhance the Company’s margin profile, while still investing for growth.

As part of these efforts, the Company is rationalizing its pipeline eliminating several projects in development, and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs. The Company estimates that it will incur approximately $160 million to $200 million in total charges in connection with the Plan. The Company expects $40 million to $60 million of the total charges to result in future cash expenditures.

The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and approximately $15 million to $25 million related to office space reductions. The Plan is expected to be largely complete by December 31, 2024, and will reduce the Company’s workforce by approximately 5%.”

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Take-Two Halts Production For Many In-Development Games

Well, it goes without saying that Take-Two’s latest move brings along the cancellation of ‘several projects’ that were in development, though we still can’t confirm their names. It seems most of the games were unannounced, though BioShock fanatics might be wondering if the next installment of the FPS franchise would make the cut or not.

The game was announced around four-and-a-half years ago, and it still hasn’t shown any signs of hitting the market. It’s important to note that Take-Two recently acquired Gearbox for $460 million from the Embracer Group while also confirming that a new Borderlands game is in the works.