Rockstar Games, โMaker โฃof ‘Grand Theftโค Auto,’ confirms Layoffs Amidst parent Company Restructuring
New York, NY – February 29, 2024 – Rockstar โขGames, the studio behind the globally renowned “Grand Theft Auto” โfranchise, has confirmed layoffs impacting dozens of employees across multiple departments. The cuts come as partโ of a โฃbroader restructuring effort by โฃparent company Take-Two Interactive, signaling a shift in priorities for the gaming โgiant.
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. Thisโข restructuring follows aโ period ofโฃ notable investment in the progressโ of “Grand Theft Auto VI,”โ currently slated for a 2025 release,โค and reflects a need to realign resourcesโ for long-term profitability. The move โขhas sparked controversy, notably given Rockstar’s substantial โfinancial success and theโ anticipation surroundingโ its nextโ major title.
Take-Two Interactive announced the restructuring plans earlierโ thisโ month, citing a desire to โ”rightsize the organization” and improve operational efficiency. In a statement to employees, the company indicated the changes were necessary to “support our long-termโ strategy” and position itself for future growth. The layoffs areโฃ expectedโ to generate approximately $200 million in โคcost savings over theโ next fiscal year.
The affected employees were informed of โthe decision on February 28th, and severance packages โคare being offered. While Rockstar Games has not disclosed the โspecific number ofโ employees impacted at its โฃindividual studios, sources indicate the cuts represent a significant reduction in workforce. This news arrives โฃamidst ongoing debate within the gamingโฃ industry regarding labor practices and the financial pressures faced by developers, even at highly profitable companies. The situation is further complicatedโฃ by recent unionization โefforts within the gaming sector, raising questions about the potential for futureโค labor โdisputes.