Take-Two Interactive to lay off 5% of its workforce

Just a couple of months after CEO Strauss Zelnick stated that the publisher had no plans for layoffs, Take-Two Interactive announced that it would eliminate over 550 positions and cancel multiple projects as part of its ongoing restructuring plan.

The details:

• Take-Two confirmed the layoffs in a new filing, stating it would be "eliminating several projects in development and streamlining its organizational structure." The restructuring plan is expected to be "largely complete" by the end of 2024.

• The GTA publisher expects to incur total charges of $160 million to $200 million, with $120 million to $140 million related to project cancellations. Employee-related costs, such as severance pay for those affected by the cuts, are expected to cost between $25 million and $35 million, with an additional $15 million to $25 million going toward reducing office space.

• In February, Zelnick stated that Take-Two intended to cut spending on marketing and third-party expenses, but that there were "no current plans" for layoffs. This is similar to the company's restructuring program last year when the CEO stated that there were no plans for layoffs before cutting jobs at the Private Division and other departments a month later.

More Take-Two news:

• Take-Two acquired Borderlands developer Gearbox for $460 million from Embracer Group in March.

• Rockstar has announced that L.A. Noire and Bully will be added to its GTA+ subscription service later this year.