Heartland Magazine – Take-Two Interactive to Lay Off 600 Employees
In a surprising turn of events, Take-Two Interactive, the parent company of beloved game developer Rockstar Games, has announced plans to lay off approximately 600 employees, which accounts for around 5% of its workforce. This decision is part of a broader cost-cutting strategy that also involves cancelling several projects that were currently under development.
The news was made official through filing necessary paperwork with the Securities and Exchange Commission. The downsizing process is expected to be largely complete by the end of the year 2024. This move comes amidst a larger trend of layoffs within the gaming industry, with companies like Sony’s PlayStation and EA also making reductions.
Interestingly, Take-Two had previously stated that they had no current plans for layoffs. However, changes in financial results have led to the implementation of this cost reduction plan. The company estimates costs ranging from $160 to $200 million due to the downsizing, with charges for game cancellations, employee severance, and reductions in office space.
Despite these challenges, Take-Two has continued to invest in its portfolio by acquiring Gearbox and working on the highly anticipated ‘GTA 6’. Fans are eagerly awaiting updates on this upcoming release, even as the company navigates through this period of change and restructuring. Stay tuned for more updates on this developing story.
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