Take-Two layoffs: Over 570 workers affected, multiple games cancelled

Shortly after Take-Two Interactive bought Borderlands developer Gearbox for $460 million, the publisher has announced a big cost-cutting plan that will eliminate hundreds of jobs.

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Take-Two's new 8-K SEC filing confirms the company will lay off 5% of its workforce in a bid to save money. As of March 2023, Take-Two employed 11,580 full-time employees--assuming this is still accurate, a 5% elimination would affect 579 Take-Two employees. Layoffs had already been expected post-Gearbox acquisition.

Multiple undisclosed games have been cancelled because of the cost-reduction strategy. "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," reads the SEC filing.

• Read more: Ubisoft talent are shaming upper management, mass exodus expected despite layoffs
• Read more: Ubisoft announces 'major portfolio reset,' cancels 6 games including Prince of Persia remake

The cancellations won't be cheap. Take-Two expects to pay up to $200 million total, and most of that money will be spent on cancelling games. Take-Two is prepared to spend up to $140 million to shutter parts of its games pipeline.

The publisher originally wanted to release 52 games from FY24 to FY26 but this slate hasn't been updated since May 2023. This number includes different types of games ranging from big AAA premium titles like GTA 6 and Judas to smaller-scale F2P mobile games, remasters, and AA releases.

A bit ago, I warned readers that a number of games could already have been cancelled. Take-Two will update the new game pipeline next month in May 2024 to reflect the cancellations.

Here's the charges that Take-Two expects to have to pay as part of the plan's execution, and the plan is expected to be finished by the end of the calendar year.

• The Company estimates that it 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.