Take-Two to Cut 5% of Staff and Scrap Projects in Effort to Reduce Annual Costs by Millions for GTA 6 Production

Take-Two Interactive Software, the publisher of the popular “Grand Theft Auto” franchise, has announced plans to lay off approximately 600 employees, which accounts for about 5% of its workforce. This decision comes as part of a broader cost-reduction strategy, which is expected to generate up to $165 million in annual savings and incur charges of up to $200 million. The company has also revealed that several projects in development will be scrapped, although specific details about these projects have not been disclosed.

The move by Take-Two aligns with a trend in the video-gaming industry, with other major players such as Riot Games, Electronic Arts, and Sony Corp also implementing workforce reductions in response to uncertain consumer spending post-pandemic. Research firm Newzoo predicts that PC and console gaming revenue growth will remain below pre-pandemic levels through 2026, as gamers spend less time playing.

Canceled projects are expected to contribute to $140 million of the total charges, with additional costs related to severance and employee-related expenses amounting to up to $35 million. Take-Two will also downsize office space as part of the restructuring. The company, which currently employs 11,580 full-time workers, recently announced the acquisition of Gearbox, the studio behind “Borderlands,” for $460 million.

While Take-Two has been focusing on developing the highly anticipated next installment in the “Grand Theft Auto” series, there have been reports suggesting a possible delay in its release to 2026 from the initially projected 2025 timeline. Overall, the industry-wide job cuts and restructuring reflect a shifting landscape in the gaming sector, as companies adapt to evolving market conditions and consumer behaviors.