Take-Two Interactive Software will lay off about 5 percent of its workforce, or about 600 employees, the publisher of the “Grand Theft Auto” franchise said Tuesday, as the video game industry widens its job cuts. job for more than two years. .
The company will also exit several projects under development as part of a cost-cutting plan, which is expected to result in total charges of up to $200 million. He declined to name the projects that have been canceled.
Take-Two said the move is expected to generate more than $165 million in annual cost savings.
The company's shares were 1% higher in extended trading. They have fallen almost 10% so far this year.
The move aligns Take-Two with Riot Games, Electronic Arts and Tencent-owned Sony Corp of Japan to cut workforces this year due to uncertain consumer spending after the pandemic-era boom.
According to research firm Newzoo, PC and console gaming revenue growth is expected to remain below pre-pandemic levels until 2026 as gamers log fewer hours of gameplay.
Canceled projects will account for up to $140 million of total charges, while severance and employee-related costs are expected to be up to $35 million, he said. Take-Two will also downsize 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 $460 million in a cut-price deal at a time when consolidation is driving up prices from well-known title manufacturers.
Take-Two has been focusing on the development of the next installment of the best-selling “Grand Theft Auto” franchise, but some reports have said that the title could be pushed back to 2026 from 2025.
© Thomson Reuters 2024
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