Grand Theft Auto writer Take-Two Interactive is shedding 5% of its workforce and ‘rationalizing its pipeline,’ the most recent skin-crawling company euphemism for folks shedding their jobs

Grand Theft Auto writer Take-Two Interactive stated at present that it has “accepted a price discount program to establish efficiencies throughout its enterprise and improve the corporate’s margin profile, whereas nonetheless investing for development,” and what meaning in sensible phrases is that it is canceling a number of video games presently in improvement and shedding roughly 5% of its workforce.

Phrase of the layoffs got here from an SEC submitting saying Take-Two is “rationalizing its pipeline” and “streamlining its organizational construction.” Among the many costs it’ll absorb connection to the cuts are $15 to $25 million associated to workplace house reductions, suggesting that some Take-Two workplaces will probably be closed as a part of the cuts. 

The precise variety of staff being put out of labor was not revealed, however in a 2023 annual report Take-Two stated it had practically 11,580 staff worldwide as of March 31, 2023, which might put the quantity being laid off at just a little underneath 600. This would be the second spherical of layoffs in simply over a yr at Take-Two: In March 2023, following “exponential development in recent times,” Take-Two laid off an unknown variety of staff from its Personal Division publishing label and different divisions.

Take-Two reported $1.3 billion in internet bookings in its most up-to-date monetary quarter and expects whole internet bookings of $5.25 to $5.3 billion for its 2024 fiscal yr. That is some huge cash, though apparently not sufficient to stop shedding a whole bunch of individuals. And whereas there will probably be much more cash—a lot more cash—when Grand Theft Auto 6 comes out in 2025 or ’26 or every time, that will not be sufficient both.

As of early February there had been greater than 16,000 layoffs within the video games business for the reason that begin of 2023, and 2024 has proven no indicators of slowing down. Since then we have seen a whole bunch extra layoffs from studios together with Relic, Sure Affinity, Sega, EA, and extra.

Take-Two declined to touch upon the layoffs and cancellations. The corporate’s subsequent monetary report will happen in Might, and should shed extra gentle on the extent of the cuts.