GTA publisher Take-Two has announced plans to lay off about 500 employees and cancel some projects, after saying layoffs would be the “hardest thing to do”

Take-Two Interactoive, the company behind “GTA” developer Rockstar Games, which recently acquired “Borderlands” developer Gearbox Software for $460 million, announced plans to lay off more than 500 employees and cancel some projects in development . As we sadly expected, this is part of the company’s cost-cutting plan.

The plans were disclosed via an SEC filing (thanks to GamesIndustry.biz), which outlined that Take-Two’s board of directors had approved the plans and explained the company’s rationale for the move. The latter contains many languages ​​you might expect.

The cost cuts are intended to “increase efficiencies across the business and improve the company’s profit margins while still investing for growth,” Take-Two wrote in the filing. “As part of these efforts,” it added, “the company is rationalizing its pipeline, eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs.”

So, what does this mean? Well, about 580 of Take-Two’s total headcount of about 11,500 people will be out of work by the end of 2024, which will result in “a loss of approximately $25 million.” $35 million [in costs] and employee severance and employee-related costs. In addition, those unnamed projects that were canceled will cost the company $120 million to $140 million. As part of the plan, Take-Two is also preparing to reduce its office space.

This comes after Take-Two spent considerable time over the past few years, with GIBiz noting that this cost-cutting plan is the third the company has announced since February 2023. The plan was also announced after Take-Two CEO Strauss Zelnick told IGN during an earnings call in February, when the company was still finalizing this round of cost cuts, “The hardest thing to do is lay off people.” Colleagues, we have no plans at the moment.”

Obviously, things are changing all the time in this industry, but yeah, it seems like something worth remembering the next time a CEO says something like that.