Grand Theft Auto VI Publisher Take-Two Interactive announced massive cuts in an SEC filing at the close of business today. The company said it will lay off 5 percent of its approximately 11,000 employees and has canceled several projects in development worth $140 million to “streamline its pipeline.”
“The Company estimates that it will incur total costs related to the Plan of approximately $160 million to $200 million,” Take-Two wrote in its filing. “The company expects that $40 million to $60 million of the total cost will result in future cash expenditures. The total charge consists of approximately $120 million to $140 million related to the cancellation of titles, approximately $25 million to $35 million related to severance and employee-related costs, and approximately $15 million to $25 million related to the reduction of Office space.”
These surprise cuts come less than a month after Take-Two CEO Strauss Zelnick told IGN
Take-Two recently announced a plan to acquire Gearbox Entertainment, maker of the loot shooter series border areas
Take-Two reported net bookings of $1.2 billion in its most recent quarter, up 20 percent year over year. Zelnick received total compensation of over $40 million as head of the company last year, thanks in part to this Bonuses are designed to encourage players to spend more money to microtransactions.
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