FX.co ★ Take-Two To Lay-Off 5% Of Workforce, Axe Several In-Development Projects

Take-Two Interactive has confirmed a considerable restructuring of its global operations that will lead to a reduction of around 5% from their workforce, equating to roughly 579 jobs. Accompanying this action, several developmental projects will be cancelled, a dual approach aimed at generating an annual saving of over $165 million.

Take-Two Interactive, best known for highly successful franchises like Grand Theft Auto, NBA 2K, and BioShock, detailed this streamlining strategy in a recent SEC filing. Part of reconfiguring their organisational structure involves lowering current staff numbers and tempering future recruitment requirements.

Additionally, the company is implementing a cost reduction strategy designed to improve financial efficiencies across its overall business. An enhancement in the organisation's profit margin profile without compromising the company's growth-oriented approach is the major objective of this strategy.

As of March 2023, Take-Two Interactive had 11,580 full-time employees. The termination of certain developmental projects correspond to about $140 million of the forecasted total charges, while expenses related to redundancies and employee-related costs could reach up to $35 million.

The full completion of this cost-cutting and restructuring program, which anticipates accruing charges close to $200 million, is projected by the close of 2024.

The company has not divulged detailed information on specific teams that will be affected or projects slated for cancellation. However, it is expected that the much-anticipated Grand Theft Auto VI, scheduled for release the following year, will proceed as planned without any significant disruption.