GTA 6 publisher Take-Two planning major layoffs ahead of sequel’s launch

take2 interactive office imageTake-Two Interactive

GTA 6 publisher Take-Two Interactive is planning to have major layoffs as a part of its “cost reduction plan” ahead of the highly-anticipated sequel’s launch in the coming years.

Owner of both Rockstar and 2K Games, Take-Two Interactive has revealed that the publisher will be laying off multiple staff as a part of its new “cost reduction program”. The company revealed the upcoming layoffs during its earnings release for Q3 of the 2023 financial year.

“In light of the current backdrop and Take-Two’s strong commitment to efficiency, the company is implementing a cost reduction program expected to yield over $50 million of annual savings, which it will begin to realize in the fourth quarter of its Fiscal Year 2023.”

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This restructuring will seemingly impact a wide range of personnel across Take-Two, with a primary focus on “corporate and publishing functions,” the report read. On top of this, the publishing giant is also expecting to mitigate “over $100 million” in costs from its other mobile-focused division in Zynga. Similarly, these changes are “not expected to impact the delivery of its robust multi-year pipeline.

“Take-Two believes these actions, combined with its focus on profitably growing its scale, will enable the Company to maximize its margins as it delivers on its anticipated growth trajectory over the next few years.”

grand theft auto screengrabRockstar Games
The layoffs come ahead of GTA 6’s launch, which of yet, doesn’t have a defined release date.

These layoffs have come as quite a surprise to the public, as despite the success of GTA 5 with over 170 million copies sold, Take-Two is still looking to lower costs ahead of the sequel’s release. While no concrete date has yet been announced for the highly-anticipated sixth installment, we’re sure to hear more on GTA 6 in the coming years, especially given a huge chunk of the game leaked just months ago.

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“We take leaks very seriously indeed and they disappoint all of us,” Take-Two CEO Strauss Zelnick said on the same day as the layoff news arrived. “It’s really frustrating and upsetting to the team, however as a business matter, we’re not affected.” 

These layoffs have become a recent trend in the gaming and tech industry due to the struggling economy, with Microsoft announcing 10,000 employees being laid off in the previous month. Alongside hit EA franchises like Apex Legends and Battlefield shutting down mobile ports unexpectedly.