Take-Two Interactive Software will lay off about 5% of its workforce, or about 600 employees, the publisher of the “Grand Theft Auto” series said on Tuesday, as the video game industry continues its layoff program for more than two years.
The company will also cancel several projects under development as part of a cost-cutting plan that is expected to cost a total of up to $200 million. It declined to name the projects that had been cancelled.
Take-Two said the move is expected to save more than $165 million in annual costs.
The company’s shares rose 1% in after-hours trading. They have fallen nearly 10% so far this year.
The move joins Take-Two, Tencent’s Riot Games, Electronic Arts and Japan’s Sony Corp in cutting jobs this year amid uncertainty about consumer spending after the pandemic-era boom.
PC and console game revenue growth is expected to continue to be below pre-pandemic levels through 2026 as gamers spend less time playing, according to research firm Newzoo.
The company said canceled projects will account for up to $140 million of total charges, while severance and employee-related costs are expected to be as high as $35 million. Take-Two will also lose some office space as part of the move.
The company, which had 11,580 full-time employees as of March 2023, agreed last month to acquire Borderlands maker Gearbox for $460 million at a time when consolidation is driving up prices at high-profile game makers.
Take-Two has been focused on developing the next installment in the best-selling Grand Theft Auto series, but some reports suggest it could be delayed from 2025 to 2026.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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