Yet another publisher announces layoffs.
Take-Two, publisher of GTA 6 has announced layoffs that amount to 5% of its workforce. The publisher will also be cancelling several planned projects moving forward.
This came as a surprise to employees and the wider industry. Only as recently as February Take-Two's CEO said that the publisher did not have any plans for layoffs. Even despite several other major publishers being forced to reduce their workforce.
Will Take-Two layoffs impact GTA 6?
As per Bloomberg, the Take-Two layoffs will impact almost 600 employees, with a 5% cut to the publishers workforce. A whole host of other publishers, including EA, Riot Games and Microsoft have all also made layoffs of their own since the turn of the year.
The announcement has raised questions about the future of GTA 6. The game is due in 2025, and is one of the most anticipated games of all time. GTA 5 was an incredibly successful project generating over $8.5 billion in worldwide revenue.
Obviously, these Take-Two layoffs do not mean that GTA 6 has been cancelled. The project will be a major revenue stream for the publisher. There has been no statement about any impact on GTA 6 as a result of these layoffs.
However, it was reported in March by Kotaku that the release date for GTA 6 was set to slip. Sources reported that the 2025 release date was going to be pushed back to 2026. These were not as a result of any layoffs, but as a result of issues in the development process.
Of course, laying off a significant portion of the publishers staff will not be helpful for reducing the impact of any delays. While there may not be direct implications for GTA 6 as a result of these layoffs, this makes the 2026 release date all the more likely.
Reduced office space also part of Take-Two's cost saving plan
In addition to Take-Two's layoffs, the company will be downsizing their office facilities as part of their cost reduction plan. These changes won't come cheap. Their plan, which will save Take-Two in excess of $165 million per year incurs significant short term costs. They expect to have to pay up to $140 million in charges related to the cancellation of projects. Then, an additional $25 million to $35 million will be spent on employee severance packages and other related costs.
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