Take-Two (NASDAQ:TTWO) Interactive Software (TTWO), the publisher behind the "Grand Theft Auto" series, announced on Tuesday that it will cut approximately 5% of its workforce, amounting to around 600 employees.
The move comes as part of a broader trend of job reductions within the video gaming industry, which has been ongoing for over two years.
Furthermore, Take-Two plans to discontinue several projects currently in development as part of its efforts to reduce costs.
While the company has not disclosed the specific projects affected, it anticipates that these cancellations will lead to total charges of up to $200 million. Even so, the video gaming giant expects the cost-cutting measures to generate over $165 million in annual savings.
In a Wednesday note, Jefferies analysts said the decision to trim the workforce and scrap projects “is a positive for the stock and should drive better L-T margins in FY26 (post GTA VI launch).”
“We expect most are non-development roles as TTWO integrates Zynga. The FY25 guide and GTA VI likely to remain front-of-mind into F4Q results,” they added.
TTWO shares rose 1% in premarket trading.