GTA publisher Take-Two Interactive announces plans to reduce workforce by 5%

Job cuts in gaming industry: On Tuesday, Take-Two Interactive Software, publisher known for its "Grand ft Auto" series, announced plans to reduce its workforce by approximately 5 per cent, affecting around 600 employees. decision comes amidst ongoing job cuts within video gaming industry, extending over two years.

In dition to workforce reductions, Take-Two revealed intentions to halt several projects currently in development as part of a cost-reduction strategy, with anticipated charges amounting to as much as $200 million. specific projects discontinued were not disclosed.

Projected annual cost savings from se measures are estimated to exceed $165 million. Following this announcement, Take-Two's shares experienced a 1 per cent increase in extended tring, though y have declined by nearly 10 per cent since beginning of year.

This move aligns Take-Two with or industry players like Riot Games (owned by Tencent), Electronic Arts, and Sony Corp, all of whom have also implemented workforce reductions in response to uncertain consumer spending following pandemic-era surge.

Research firm Newzoo predicts that growth in PC and console gaming revenue will continue to lag behind pre-pandemic levels until 2026, reflecting a decrease in gamers' playtime.

costs associated with cancelled projects are expected to reach up to $140 million, while expenses related to severance and employee-related matters could amount to $35 million. As part of restructuring, Take-Two will also downsize some of its office space.

As of March 2023, company employed 11,580 full-time workers. Last month, Take-Two announced its acquisition of Gearbox, developer behind "Borderlands," for $460 million, signalling a trend of consolidation in industry.

While Take-Two has been primarily focused on developing next instalment of immensely popular "Grand ft Auto" franchise, reports suggest that its release may be delayed to 2026 from previously anticipated 2025 timeframe.

(With Reuters inputs)