Grand Theft Auto maker Take-Two to let go 5% of staff, scrap some projects

Take-Two Interactive Software will lay off about five per cent of its workforce, or around 600 employees, the publisher of the "Grand Theft Auto" franchise said on Tuesday (April 16), as the video-gaming industry extends its more than two-year long job cuts.

The company will also scrap several projects in development as part of a cost-reduction plan, which is expected to result in total charges of up to US$200 million (S$272 million). It declined to name the projects that have been cancelled .

Take-Two said the move is expected to drive more than US$165 million of annual cost savings.

The company's shares were one per cent higher in extended trading. They have fallen nearly 10 per cent so far this year.

The move aligns Take-Two with Tencent-owned Riot Games, Electronic Arts and Japan's Sony Corp in trimming workforce this year due to uncertain spending from consumers after the pandemic-era boom.

PC and console gaming revenue growth is expected to remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, according to research firm Newzoo.

Cancelled projects will account for as much as US$140 million of the total charges, while severance and employee-related costs are expected to be up to US$35 million, it said. Take-Two will also reduce some office space as part of the move.

The company, which had 11,580 full-time employees as of March 2023, last month agreed to buy "Borderlands" maker Gearbox for US$460 million in a cut-price deal at a time consolidation is driving up prices for makers of well-known titles.

Take-Two has been focused on the development of the next instalment in the best-selling "Grand Theft Auto" franchise, but some reports have said the title could be delayed into 2026 from 2025.

ALSO READ: Electronic Arts to lay off 5% of workforce, reduce office space