Apr 17, 2024 03:54 PM IST
Tech layoffs: The company said it will cancel ongoing projects as a part of its cost-reduction efforts as it aims to streamline operations and manage expenses.
Take-Two Interactive Software, the company behind “Grand Theft Auto” franchise, said that it will cut about 5 per cent of its workforce. This will impact approximately 600 employees of the company and comes at a time of job reductions in the sector which have been going on for for over two years. The company also said that it will cancel several ongoing projects as a part of its cost-reduction efforts as it aims to streamline operations and manage expenses.
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Earlier, Take-Two expanded its portfolio by acquiring Gearbox, the creator of “Borderlands” for $460 million. The company said that it remains focused on developing the next installment of its best-selling “Grand Theft Auto” series.
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What company said on the layoffs?
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The layoffs and project cancellations could cost the company total charges of up to $200 million- canceled projects could contribute as much as $140 million this while severance and other employee-related costs may reach up to $35 million.
Is it an ongoing trend in the gaming sector?
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Yes, the sector has been facing broader challenges owing to which companies like Tencent’s Riot Games, Electronic Arts, and Sony Corp have also implemented workforce reductions in 2024. Research firm Newzoo projected that the slower growth could continue through 2026 and stay below pre-pandemic levels.
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