Video game giant Take-Two Interactive, the publisher behind the iconic “Grand Theft Auto” franchise, announced new layoffs on Tuesday. As the gaming industry grapples with ongoing changes, the company will let go of roughly 5% of its employees.
The publisher is also dropping several projects in development. This streamlining effort is part of a broader cost-cutting measure expected to generate a total amount of $160 million to $200 million by the end of the year.
While the reasons for the layoffs and project cancellations are unknown, the best guess is that Take-Two is looking to tighten its belt. This could be due to factors such as lower-than-expected sales, a shift in development priorities, or a combination of both.
While Take-Two Interactive’s restructuring news might be a surprise, it’s worth noting it’s not an isolated incident within the tech industry. The electric vehicle (EV) giant Tesla recently announced a workforce adjustment exceeding 10% of its global staff, which indicates a change in market trends that is usually attributed to AI advancement.
Well-established companies like Take-Two and Tesla, need to be constantly evaluating and adjusting their strategies to stay competitive.
In the meantime, it’ll be interesting to see how this move impacts Take-Two’s future development and releases. We’ll likely learn more about the specific reasons behind these decisions in the coming months.
