Owner of GTA 6, Take-Two announces mass layoffs and end of projects

It has been a very delicate moment for the market, given the numerous cuts that have occurred in recent months. Apparently, this bad streak continues: Take-Two, owner of properties such as GTA e Red Dead Redemptionwill lay off 5% of its total workforce — around 570 people, according to estimates.

According to Reuters, Take-Two will also scrap several projects currently in development as one of the company’s cost-cutting strategies.. However, these cancellations will generate charges that will cost between US$160 million and US$200 million for the publisher’s pockets.

In the first 60 days of 2024 alone, there were almost 9,000 layoffs in the global games industry, according to a report from My city. By the end of the year, this number will be even higher, as Take-Two plans to make the new cuts by December 31st.

Fear of crunch could affect GTA 6 production

The fact is that the games industry is going through a huge change — and that’s not necessarily a good thing. For brands, which are cutting their budgets, maybe yes. But for those on the chopping block, the hole is deeper: many are unemployed, and those who remain are at serious risk of being subjected to the terrible crunch.

Will the cuts at Take-Two impact the production of GTA 6?Source: Rockstar

For example: Rockstar, one of the main studios under the umbrella of Take-Two, ended the home office work model to optimize productivity and guarantee the “maximum possible quality” for GTA 6 — and, of course, prevent new leaks.

The idea was resisted by several company employees. Some of them are even members of the Independent Workers Union of Great Britain (IWGB). The agency justifies that the end of hybrid work would mean the return of crunch — which consists of long and tiring working hours.

Despite the cuts, Take-Two continues to expand its portfolio

Despite 5% cuts in its workforce, Take-Two announced, at the end of March, that it purchased Gearbox from Embracer Group for US$460 million.

Now, the studio, which already had a long-lasting relationship with Take-Two due to the franchise Borderlandswill be fully owned by the publisher — which also takes home properties such as Tiny Tina’s Wonderlands, Brothers in Arms and the classic Duke Nukem.

Will the cuts announced by Take-Two impact the production of GTA 6 somehow? What projects would be shelved by the publisher to cut costs? Well, hopefully Bully 2 do not be among them.