GTA VI publisher cancels $140 million in new projects and lays off hundreds

publisher Take-Two Interactive announced massive cuts to its SEC filings today at the top of its run. The company revealed it could lay off 5 percent of its roughly 11,000 employees and canceled several $140 million price of projects in development because it tries to “rationalize its pipeline.”

“The Company estimates that it will incur total charges of approximately $160 million to $200 million in connection with the Plan,” Take-Two wrote in its filing. “The company expects aggregate charges of $40 million to $60 million to result in future money outlays. The total charge is roughly $120 million to $140 million related to title cancellation, roughly $25 million to $35 million related to severance and employee-related costs, and roughly $15 million to $25 million related to the reduction of office space.

These surprise cuts come lower than a month after Take-Two CEO Strauss Zelnick he said the corporate had “no current plans” to put off additional employees in reference to the “cost reduction” program mentioned in a March call with investors. The company expects an enormous increase in sales after the launch. It is currently scheduled to reach in 2025.

Take-Two recently announced its plan to accumulate Gearbox Entertainment, the developer of the shooter series published by its 2K label, for $460 million by the top of June. The transaction will likely be financed by the sale of new Take-Two shares. In addition to , Take-Two and its subsidiaries even have new games and games in development, while Ken Levine’s Ghost Story Games is working on a game that appears prefer it’s in space.

Take-Two reported net bookings of $1.2 billion last quarter, up 20 percent from a 12 months earlier. Zelnick took home greater than $40 million in total compensation as head of the corporate last 12 months, thanks in part bonuses tied to getting players to spend more cash on microtransactions.

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