As Take-Two Lays Off 600 Employees, Will GTA 6 Be Delayed? Here's What We Know

The Take-Two layoffs are part of a broader cost-reduction strategy that includes the termination of several unspecified projects currently in development.

GTA 6 release date might be pushed back to 2025 or 2026.

Take-Two Interactive Software, the company behind the renowned Grand Theft Auto (or GTA) games, has announced that it will be cutting approximately 5 per cent of its workforce. This decision translates to around 600 employees losing their jobs amid ongoing economic pressures on the sector, reported Reuters. 

The layoffs are part of a broader cost-reduction strategy that includes the termination of several unspecified projects currently in development. These cancellations are anticipated to contribute substantially to a projected total charge of up to $200 million. According to the company, this restructuring plan will eventually save more than $165 million annually.

Troubled Times For Gaming Giants

This move by Take-Two is reflective of a broader trend in the gaming industry, which has seen giants like Tencent's Riot Games, Electronic Arts, and Sony Corp also reduce their workforces. This wave of layoffs comes as the industry continues to face challenges in sustaining the heightened consumer spending levels experienced during the pandemic.

In addition to project terminations and layoffs, Take-Two is also reducing some of its office spaces. The financial breakdown provided by the company indicated that cancelled projects might result in charges of up to $140 million, with severance and other employee-related costs potentially reaching $35 million.

Despite these changes, the market responded with a slight increase in Take-Two's share price, which went up by 1 per cent in extended trading, as reported by Reuters, although it has seen a nearly 10 per cent decline over the year.

The gaming landscape has been tough, with revenue growth for PC and console games projected to remain subdued until at least 2026. Research from Newzoo suggests that gaming hours are declining, which could be influencing these projections.

Amid these cuts, Take-Two has continued to make significant strategic moves, including the recent acquisition of Gearbox, the creators of Borderlands, for $460 million. This acquisition is part of a broader trend of consolidation within the industry, which is pushing up valuations for popular gaming titles.

Will GTA 6 Be Pushed Back?

There are also whispers of potential delays in the much-anticipated next instalment of the Grand Theft Auto series, GTA 6, which might now be pushed back from 2025 to 2026.

As Take-Two navigates through these strategic reductions and changes, the impact on its future operations and the broader video game industry remains to be closely monitored.