2K and Rockstar Games’ parent company Take-Two Interactive is set to lay off around 600 employees across the company.
Take-Two Interactive, the publisher behind Grand Theft Auto, and the parent company of Rockstar Games and 2K has announced that the company has decided to lay off around 5% of its workforce or around 600 employees. The company announced in a statement on Tuesday that the identified in-development game projects would be canceled as a result of the budget cuts.
According to a filing made on Tuesday, the company expects to spend up to $200 million as part of the downsizing effort, which includes up to $140 million in project cancellations and $35 million in employee-related expenses. In addition, this decision will save around $160 million for Take-Two Interactive.
CEO of Take-Two Interactive Strauss Zelnick had stated earlier in the year that the company was considering reducing costs, but he also stated at the time that there were “no current plans” for layoffs. Moreover, the company launched a previous “cost reduction program” in February of last year with the goal to save $50 million annually. That decision resulted in a round of layoffs in the following month, affecting several companies.
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