'Grand Theft Auto' maker Take-Two to cut jobs, cancel games in cost-cutting plan

By Claudia Assis

Plan would save about $165 million a year, videogame developer says

Videogame maker Take-Two Interactive Software Inc. said late Tuesday it will lay off about 5% of its workforce, cancel games and end projects as it aims to save about $165 million a year.

Take-Two (TTWO) said in a filing that the plan, already approved by its board, also calls for finding "efficiencies" across its business and boosting profit margins.

Take-Two and its subsidiaries' game franchises include "Grand Theft Auto" and "Red Dead Redemption."

The stock was flat in the extended session Tuesday, after ending the regular trading day up 0.1%. Take-Two bought "FarmVille" maker Zynga in 2022.

The company said in May 2023 it had 11,580 full-time employees worldwide as of March 2023.

Take-Two is "rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure," which, alongside the layoffs, will reduce "future hiring needs," Take-Two said in the filing.

The company estimated that it will incur about $160 million to $200 million in charges in connection with the plan, including about $120 million to $140 million related to videogame-title cancellations, $25 million to $35 million with severances and related costs, and $15 million to $25 million related to cutting down on office space.

The company said it expects to be done with the plan by the end of the year.

-Claudia Assis

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04-16-24 1756ET

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