Layoffs at Rockstar Games Owner, 2K and Private Division. Many Unannounced Games and Projects Canceled
Take Two Interactive announced major layoffs. Several undisclosed projects were also deleted as part of the cost savings.
Take-Two Interactive, the owner of Rockstar Games, 2K, and Private Division, is the most recent company to announce layoffs. About 600 employees, which is 5% of the workforce, are expected to bid farewell to their jobs.
- To save money, the publisher also canceled several unannounced projects. The company declined to reveal details about those abandoned games. We only know that the publisher has already spent 140 million dollars on them, which will now be recorded as a loss.
- 35 million dollars will be allocated for severance packages for employees being laid off. When other costs are added, all these steps will cost Take-Two Interactive $200 million.
We are unaware of which departments and studies owned by the company will be impacted by these reductions. Overall, Take-Two Interactive anticipates that these changes will ultimately lead to a reduction in the company's operating costs by around 165 million dollars per year.
Layoffs at Take-Two Interactive are part of a major trend of job cuts in the gaming industry that has been ongoing for several months. We probably shouldn't expect a quick change. Analysts predict that revenues from games will remain below pre-pandemic levels at least until 2027.
Despite these cost-cutting measures, the future of Take-Two Interactive appears positive, largely thanks to the upcoming launch of Grand Theft Auto VI next year, which is expected to be the top-selling game of the decade.
