New York City-based video game publisher Take-Two Interactive Software Inc. (Nasdaq: TTWO) is laying off 70 employees in Seattle.
Take-Two, the parent company of gaming studios Rockstar Games and 2K, disclosed the layoffs in a Worker Adjustment and Retraining Notification filed Monday with the state of Washington. Take-Two disclosed on April 16 in a regulatory filing it is laying of about 5% of its total headcount and "eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs."
In a statement to the Business Journal, a Take-Two spokesperson said the layoffs were meant "to identify efficiencies across its business and to enhance the company’s margin profile, while still investing for growth."
Take-Two had 11,580 full-time employees as of the end of March 2023, which means the 5% reduction will affect roughly 580 employees companywide. Take-Two expects to incur about $160 million to $200 million in costs tied to its plans, including about $120 million to $140 million tied to title cancellations and about $25 million to $35 million tied to employee severance and other employee costs.
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About $15 million to $25 million of the costs are tied to office space reductions. Take-Two said in the regulatory filing its plan will result in savings of over $165 million per year, and the plan should be done by the end of 2024.
The Seattle layoffs will begin June 28, according to the Monday filing.
Take-Two was founded in 1993, according to its LinkedIn page. The publisher, through its subsidiaries, is behind popular titles like Grand Theft Auto, Red Dead Redemption and NBA 2K. Its other subsidiaries include Zynga and Private Division.
During Take-Two's 2024 fiscal third quarter, which ended Dec. 31, the company generated $1.37 billion in revenue, down from $1.41 billion during the same period the year prior.
