BENGALURU – Take-Two Interactive Software will lay off about 5 per cent of its workforce, or around 600 employees, the publisher of the Grand Theft Auto franchise said on April 16, as the video-gaming industry extends its more than two-year long period of job cuts.

The company, which had 11,580 full-time employees as of March 2023, will also scrap several projects in development as part of a cost-reduction plan. This is expected to result in total charges of up to US$200 million (S$273 million). It declined to name the projects that have been cancelled.

Take-Two said the move is expected to drive more than US$165 million of annual cost savings.

The company’s shares were 1 per cent higher in extended trading. They have fallen nearly 10 per cent so far in 2024.

The move aligns Take-Two with Tencent-owned Riot Games, Electronic Arts and Japan’s Sony Corp in trimming the workforce in 2024 due to uncertain spending from consumers after the pandemic-era boom.

PC and console gaming revenue growth is expected to remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, according to research firm Newzoo.

Cancelled projects will account for as much as US$140 million of the total charges, while severance and employee-related costs are expected to be up to US$35 million, it said. Take-Two will also reduce some office space as part of the move.

In March 2024, the company agreed to buy Borderlands-maker Gearbox for US$460 million in a cut-price deal at a time consolidation is driving up prices for makers of well-known titles.

Take-Two has been focused on the development of the next instalment in the best-selling Grand Theft Auto franchise, but some reports have said the title could be delayed into 2026 from 2025. REUTERS