Grand Theft Auto publisher Take-Two Interactive will reportedly lessen its workforce by about 579 workers or 5% of its total employees while simultaneously canceling multiple projects. The decision is predicted to result in yearly cost savings of over $165 million.
According to reports, the layoffs follow CEO Strauss Zelnick's previous statement that the publisher has no intention of making layoffs as part of its campaign to reduce costs.
Take-Two had also previously stated that it had finished "right-sizing" its company and that, in part, the anticipated release of Grand Theft Auto 6 in 2025 will put it in "growth mode" moving forward.
(Photo: CHRIS DELMAS/AFP via Getty Images) This illustration photo created in Los Angeles, California, on December 5, 2023, shows Rockstar Games' Grand Theft Auto 6 trailer played on computer screens.
Take-Two reportedly stated in the filing that it is cutting several ongoing projects and restructuring its organizational structure, which involves terminating employees.
Take-Two anticipates paying between $160 and $200 million in fees overall, of which $120 to $140 million are associated with title cancellations. The corporation estimates that these actions will result in more than $165 million yearly savings.
This appears to be the most recent development in the ongoing layoffs that are occurring throughout the gaming sector. The publishing director of Baldur's Gate 3, Michael Douse, recently spoke about the urgent problem of industry-wide layoffs that have afflicted game developers in recent years.
Avoidable Gaming Layoffs
Douse described these layoffs as an "avoidable mess," and the major gambling companies have some control over how to prevent this financial loss. Douse emphasized that layoffs are preventable and should not be considered an inevitable part of the gaming industry.
He compared large gaming organizations to enormous oil tankers and said layoffs might be prevented with enough financial reserves and forethought. Douse advised businesses to prioritize developers' needs and make stronger plans for unforeseen events rather than succumb to the pressure of appeasing shareholders.
Layoffs for Riot
Riot Games has also joined the game industry layoffs, announcing that it would lay off 530 workers in January, or around 11% of its workforce. The teams outside of core development will be most affected by the employment losses.
The CEO detailed the layoffs, stating that Riot Games currently lacks focus because it is involved in too many "things." The letter also mentioned that Riot has made significant investments, some of which are not producing the returns management hoped for.
The release also says that while Legends of Runeterra, the card game, would continue to be maintained with an emphasis on sustainability, Riot Forge will close due to the changes.
Following the release of Bandle Tale: A League of Legends Story, Riot's sixth game, It announced that it will no longer create new games for Riot Forge.
According to reports, The Forge was a cooperative platform that enabled independent creators to collaborate to create single-player games telling stories set in the League of Legends universe.
Related Article: EA Announces Newest Layoffs, Affecting Over 700 Employees
(Photo: Tech Times)
