Publisher of videogame ‘Grand Theft Auto,’ Take-Two Interactive Software is set to cut around 5% of its workforce, which amounts to about 600 employees.
This comes as the company is extending its over two-year long job cuts.
Several projects currently in development will also be scrapped, as part of a cost reduction plan. This is expected to result in up to $200 million in total charges.
The company didn’t name which of these projects will be canned.
Take-Two also said this move is expected to drive over $165 million of annual cost savings.
Shares for the company rose 1% in extended trading, however, they have fallen almost 10% since the start of the year.
Take-Two isn’t the first company to cut their workforce due to uncertain spending from consumers following the pandemic. Riot Games (owned by Tencent), Electronic Arts, and Sony also made this move.
Revenue growth for PC and console gaming is tipped to stay below pre-pandemic levels through to 2026, with gamers recording fewer playtime hours.
The cancelled projects will account for up to $140 million of the total charges. Severance and employee-related costs are expected to account for up to $35 million.
The company will also be reducing some office space.
As of March last year, Take-Two had 11,580 full-time employees. And just last month, it agreed to purchase Gearbox, the company that made ‘Borderlands,’ for $460 million.
This was part of a cut-price deal at a time when consolidation was driving up prices for makers of well-known games.
The company has been focusing on the development of the upcoming installment of ‘Grand Theft Auto,’ will reports claiming it could be delayed until 2026. It was originally expected in 2025.
