Take-Two Interactive: Record Profits and Layoffs - Where's the Logic?

Just a few weeks ago, Take-Two bought ownership of the Gearbox Software studios for $460 million, and now they are laying off 600 workers in order to save $160 million

by Sededin Dedovic
Take-Two Interactive: Record Profits and Layoffs - Where's the Logic?
© Optimus / Youtube channel

Publisher Take-Two Interactive and its subsidiaries have found themselves at the center of a serious controversy after announcing the layoffs of around 600 employees, representing approximately 5% of their total workforce.

This restructuring comes as a shock to many, given Take-Two's recent financial forecasts that predicted record revenues and significant expansion for the company. In explaining the layoffs, Take-Two claims the workforce cuts will save $160 million a year.

However, this statement raises a number of questions. Namely, just a few weeks before this announcement, Take-Two spent 460 million dollars to buy the studio Gearbox Software. And while they were celebrating this expansion, an unspecified number of layoffs had already been implemented within Gearbox.

The irony is even greater when you consider that Take-Two expects a record $7 billion in revenue for fiscal year 2025, thanks in large part to the huge anticipation for Grand Theft Auto 6. This shows that the company is looking at a bright future financially, which makes the layoffs even more difficult.

comprehensible. Employees expressed disappointment and anger at this decision. Many feel betrayed and manipulated, wondering how workforce cuts can be justified at a time of promised record profits. There is also considerable concern about the canceled games and their potential.

These canceled works represent the effort and creativity of entire development teams, and their disappearance seems like an unnecessary sacrifice. This situation sparked a wave of discussion and raised an important question about Take-Two Interactive's priorities.

Is their primary focus on short-term profit, even if it means sacrificing talent and future projects? A development studio is only as strong as its developers are strong and motivated, and such decisions can damage morale and creativity within the company, because what guarantees other employees that the same thing will not happen to them.

Laying off experienced developers could lead to delays or even cancellations of other major projects, which could ultimately negatively impact future revenues. Take-Two Interactive has not yet provided a clearer explanation for this decision, in the next few days we will hear more information, at least that's what they announced from the studio.

The video game industry is watching the situation with concern, as it could set a precedent for similar moves by other publishing houses.