Take-Two Interactive Software will lay off about five per cent of its workforce, or around 600 employees, the publisher of the “Grand Theft Auto” franchise said on Tuesday (April 16), as the video-gaming industry extends its more than two-year long job cuts.
The company will also scrap several projects in development as part of a cost-reduction plan, which is expected to result in total charges of up to US$200 million (S$272 million). It declined to name the projects that have been cancelled .
Take-Two said the move is expected to drive more than US$165 million of annual cost savings.
The company’s shares were one per cent higher in extended trading. They have fallen nearly 10 per cent so far this year.
The move aligns Take-Two with Tencent-owned Riot Games, Electronic Arts and Japan’s Sony Corp in trimming workforce this year due to uncertain spending from consumers after the pandemic-era boom.
PC and console gaming revenue growth is expected to remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, according to research firm Newzoo.
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