Rockstar Games, Maker of ‘Grand Theft Auto,’ confirms Layoffs Amidst parent Company Restructuring
New York, NY – February 29, 2024 – Rockstar Games, the studio behind the globally renowned “Grand Theft Auto” franchise, has confirmed layoffs impacting dozens of employees across multiple departments. The cuts come as part of a broader restructuring effort by parent company Take-Two Interactive, signaling a shift in priorities for the gaming giant.
The layoffs, first reported by Bloomberg, affect teams within Rockstar’s publishing division and human resources, with approximately 170 positions eliminated company-wide at Take-Two. This restructuring follows a period of notable investment in the progress of “Grand Theft Auto VI,” currently slated for a 2025 release, and reflects a need to realign resources for long-term profitability. The move has sparked controversy, notably given Rockstar’s substantial financial success and the anticipation surrounding its next major title.
Take-Two Interactive announced the restructuring plans earlier this month, citing a desire to ”rightsize the organization” and improve operational efficiency. In a statement to employees, the company indicated the changes were necessary to “support our long-term strategy” and position itself for future growth. The layoffs are expected to generate approximately $200 million in cost savings over the next fiscal year.
The affected employees were informed of the decision on February 28th, and severance packages are being offered. While Rockstar Games has not disclosed the specific number of employees impacted at its individual studios, sources indicate the cuts represent a significant reduction in workforce. This news arrives amidst ongoing debate within the gaming industry regarding labor practices and the financial pressures faced by developers, even at highly profitable companies. The situation is further complicated by recent unionization efforts within the gaming sector, raising questions about the potential for future labor disputes.
