The video game industry, especially its workers, continue to pay the high cost of inflated expectations in the post-pandemic era, suffering from a wave of layoffs and cancellations. Not even the big companies are immune to this, and today there was a controversial announcement.
Take-Two to Lay Off 5% of Workforce, Cancels Games in Development
Take-Two Interactive, the parent company of Rockstar Games, 2K, and thus of highly successful franchises like Grand Theft Auto and NBA 2K, announced that it will lay off 5% of its workforce, more than 600 employees, as a measure to strengthen its finances, marking a new round of cuts in a period of adjustment that has been ongoing for 2 years in their case, which is noteworthy considering they are one of the largest and wealthiest publishers in the video game industry.
Unfortunately, Take-Two's decision doesn't stop at layoffs, as the company also announced that it has canceled some projects in development, although it did not reveal the titles in question.
Regarding this, Take-Two stated that with these measures, it expects to save $165 million annually and stabilize its finances amidst the crisis affecting the video game industry.
The news has surprised many given the success of franchises like Grand Theft Auto, Red Dead Redemption, and NBA 2K, which are true money-making machines. However, the increase in production and operational costs has taken its toll on the company.
Nevertheless, expectations at Take-Two Interactive are high as Grand Theft Auto VI is in development, and experts believe its success will be enough to boost the gaming business.
Stay tuned here, at LEVEL UP.
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