Take-Two Cancels Multiple Games in the Wake of Layoffs

Take-Two Interactive Software, the giant video game publisher behind the Grand Theft Auto franchise and more, is planning to layoff approximately 5% of its workforce. In addition to the employees laid off there are also cuts being made in the form of cancelled projects, per the company's US Securities and Exchange Commission filing from April 16. The plan is expected to be complete by the end of 2024.

Per the filing by Take-Two, their board of directors approved a cost reduction program to enhance the company's margin profile, stating, "As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs."

The Plan's Details and The Future

The plan is in place with an estimate Take-Two "will incur approximately $160 million to $200 million in total charges in connection with the Plan. The Company expects $40 million to $60 million of the total charges to result in future cash expenditures. The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and approximately $15 million to $25 million related to office space reductions."

The filing comes just a month shy of Take-Two's CEO Strauss Zelnick statements to IGN regarding the cost reduction plan, where he indicated, "We haven't put any meat on the bones of that yet. I would just note that our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans."

This round of layoffs from Take-Two are only the latest in the gaming industry, which has been experiencing mass layoffs for months now. Take-Two just last month agreed to buy the developers behind the Borderlands franchise, Gearbox, for $460 million. Before the sale, Zelnick noted Take-Two and Gearbox have "had a long-term relationship...of which we're very proud."

Amidst the Gearbox acquisition and cost reduction plan Take-Two is developing their next entry to the Grand Theft Auto franchise, GTA 6. Other previously announced projects in-development include new BioShock and Borderlands entries, another Mafia entry reportedly being announced soon, and Judas from Kevin Levin's studio Ghost Story Games. What isn't clear by the filing is exactly what projects have been impacted by the reductions at Take-Two.

As for Grand Theft Auto 6, while a successful and timely release would certainly go a long way for Take-Two at the moment, its status in development has recently lead to questions as to whether players can expect the game in 2025 or 2026. While GTA fans wait for the game's release there's always rewatching the record breaking trailer (again) and trying to decide who the cast features for yourself amidst continued speculation, though you can already rule Troy Baker out as Jason.

Where do you expect to see the cancellations impact Take-Two's projects? Let us know in the comments or on X.