Looks like things are getting a bit rough over at Grand Theft Auto HQ. Take-Two Interactive, the company behind the iconic game franchise, just announced a round of layoffs and project cuts.
The Numbers:
- Take-Two plans to lay off 5% of its workforce, which translates to roughly 600 employees.
- They’ll also be axing several projects in development.
- This downsizing effort is expected to cost them up to $200 million.
Reasons for the Restructuring:
- Take-Two isn’t alone in feeling the pinch. The entire video game industry has been going through a hiring slowdown for over two years now.
- This move seems to be a response to changing consumer habits. With the pandemic boom fading, analysts predict PC and console gaming revenue will stay below pre-pandemic levels for the next few years. Gamers are simply spending less time glued to their screens.
What’s Next for Take-Two?
- The cost savings from these cuts are expected to exceed $165 million annually. This could be a way for them to weather the storm and invest in future projects.
- Take-Two joins a growing list of gaming giants like Riot Games, EA, and Sony who’ve all trimmed their workforce recently.
- Despite the layoffs, gamers can likely breathe a sigh of relief. Take-Two recently acquired Borderlands maker Gearbox and remains focused on developing the next Grand Theft Auto title, although some rumors suggest it might be delayed until 2026.
So, what does this mean for you?
Well, unless you work at Take-Two, the direct impact might be minimal. But it’s a sign of the times for the gaming industry. Buckle up, as consolidation and cost-cutting might become the new normal for a while.
