New Delhi: Take-Two Interactive Software, the renowned company responsible for the popular "Grand Theft Auto" franchise, has revealed plans to reduce its workforce by approximately 5 percent. This decision will affect around 600 employees as the gaming sector continues to grapple with ongoing challenges.


Layoffs Announcement


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The announcement of layoffs comes amidst a period of job reductions within the gaming industry, spanning over the past two years. (Also Read: Viral Video: Zomato Boy Delivering Food On Harley-Davidson Surfaces Online -- Watch)


Reason Behind Layoffs


Take-Two's workforce reduction is part of its broader cost-reduction efforts, which also include the cancellation of several ongoing projects. (Also Read: Bank Holiday Alert: Financial Institutions To Close On April 19 In THESE Cities, Know Why)


Objectives


These measures are aimed at streamlining operations and managing expenses effectively.


Company's Statement


Regarding the layoffs, a spokesperson from Take-Two stated, "The layoffs and project cancellations could cost the company total charges of up to $200 million."


The spokesperson further elaborated that canceled projects could contribute as much as $140 million, while severance and other employee-related costs may reach up to $35 million.


Ongoing Trends In The Gaming Sector


Other gaming giants, including Tencent's Riot Games, Electronic Arts, and Sony Corp, have also implemented workforce reductions in 2024.


Research firm Newzoo projected a slower growth trajectory for the gaming sector, with expectations that it may continue through 2026, remaining below pre-pandemic levels.


Future Developments


Despite the layoffs and project cancellations, Take-Two remains committed to its long-term goals. The company recently expanded its portfolio by acquiring Gearbox, the creator of "Borderlands," for $460 million.


Additionally, Take-Two reaffirmed its dedication to developing the next installment of its highly successful "Grand Theft Auto" series.