'GTA' video game publisher Take-Two cuts workforce

WASHINGTON - Take-Two Interactive told US regulators it is trimming its workforce by five percent and eliminating some video games in production to cut costs.

About 600 jobs are expected to be eliminated by Take-Two, parent company of studios including Rockstar Games, maker of the blockbuster "Grand Theft Auto" line-up.

Take-Two is "rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs," it said in a filing with the Securities and Exchange Commission.

Layoffs have hit video game companies large and small since the end of the pandemic, with over-hiring and economic woes cited among reasons.

The New York-based company had put out word it was working on a plan to reduce costs after reporting disappointing earnings in the final three months of last year. 

Take-Two lowered its financial outlook at the time, saying in an earnings release that the change reflected "softness" it was experiencing in mobile advertising and its "NBA 2K24" basketball video game.

Take-Two owns mobile game maker Zynga.

"Grand Theft Auto" and "Red Dead Redemption" exceeded Take-Two's expectations in the quarter, according to the earnings release.

Millions of video game fans got their first glimpse of "Grand Theft Auto VI" in December with the release of a trailer promising the first woman lead character and a 2025 release date for the latest instalment of one of the world's biggest entertainment franchises.