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Video game publisher Take-Two Interactive (NASDAQ:TTWO) disclosed on Tuesday that it will reduce its workforce by about 5%, spelling continued trouble for the video game industry.
As of March 31, 2023, the publisher of the Grand Theft Auto franchise had 11,580 employees. A 5% reduction in its headcount would impact about 579 employees.
The company added that it would scrap several projects in development as part of a cost reduction program, which is estimated to lead to total charges of $160 million to $200 million.
Just as in 2023, layoffs have hit the video game industry in 2024. In January, Tencent’s (OTCPK:TCEHY) (OTCPK:TCTZF) Riot Games announced it would lay off 11% of its workforce. Unity (U) also announced a 25% reduction in workforce, while Amazon’s (AMZN) live-streaming site Twitch announced plans to cut about 35% of its workforce.
Microsoft (MSFT) reportedly laid off 1,900 employees at its gaming division, affecting roles at Activision Blizzard, Xbox, and Zenimax.
Take-Two (TTWO) is the parent company of Rockstar Games, the studio working on the highly anticipated Grand Theft Auto VI. The company continues to earn massive amounts of revenue from its GTA series, even though the last installment, GTA V, was released in 2013.
The company expects its cost reduction plan to be largely complete by December 31, 2024.