Take-Two Announces Layoffs and Restructuring Amid GTA 6 Release Delays

Take-Two Announces Layoffs and Restructuring Amid GTA 6 Release Delays

22. April 2024 by Never

Take-Two, the publishing powerhouse behind GTA 6, has dropped a bombshell by revealing plans to downsize its workforce by 5%, affecting approximately 600 employees.

This decision comes alongside the cancellation of several planned projects, sending shockwaves through both the company and the gaming industry at large.

Impact on GTA 6’s Future

The layoffs have cast a shadow of uncertainty over the highly anticipated release of GTA 6, originally slated for 2025. The game is considered one of the most eagerly awaited launches in gaming history, following the immense success of its predecessor, GTA 5, which raked in over $8.5 billion in global revenue.

GTA 6 Publisher Take-Two to Layoff 5% of its Workforce and Cancel Games
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While the layoffs do not necessarily spell the end for GTA 6, which is expected to be a major revenue driver for Take-Two, reports from Kotaku in March suggest that the release date could be pushed back to 2026.

These delays are attributed to development process issues rather than directly to the layoffs, although the reduction in staff could complicate efforts to mitigate the impacts of these delays.

Office Space Reduction as Cost-Cutting Measure

In addition to the layoffs, Take-Two is trimming down its office spaces as part of a broader cost-cutting strategy, which comes with hefty initial expenses.

The plan aims to save over $165 million annually for the company but will incur substantial upfront costs.

Take-Two is expected to shell out up to $140 million in charges related to project cancellations, along with an additional $25 to $35 million in severance packages for employees and other associated costs.

Significant Restructuring Reflecting Industry-wide Challenges

These measures underscore a significant restructuring within Take-Two, reflecting broader efforts across the gaming industry to adapt to current economic and operational challenges. As the company navigates through these changes, the fate of GTA 6 remains uncertain, leaving fans and industry watchers eagerly awaiting further updates.