Take-Two Interactive has announced the approval of a cost reduction program, which will see an approximate layoff of 5% of its workforce.

According to the recent Security and Commission (SEC) filing, the cost reduction program was done to “identify efficiencies across its business and enhance the company’s margin profile, while still investing for growth.”

As a part of the program, the company will “rationalize its pipeline”, and also eliminate several projects that are in development. The projects that were being canceled were unnamed, so it is unsure if any major titles are being hit by this program.

The company will also streamline its organizational structure, which will eliminate headcount and reduce future hiring needs. The plan is said to be largely completed by the end of the year, which will reduce the company’s workforce by approximately 5%.

While the exact number of layoffs was not announced, Take-Two Interactive has stated that the company has over 8,894 research and development staff across the world in its 2023 annual report. Doing the math, this comes out to be a layoff of over 500 people.

When calculating total charges in connection with the cost reduction program, Take-Two Interactive has also noted approximately $15 million to $25 million being related to office space reductions, which may imply that some offices of the company will also be closed down.

This now marks the second time Take-Two Interactive has initiated a cost reduction program which led to layoffs in just over a year. Back in March 2023, the company also implemented a plan that led to them laying off people from the publishing label Private Division.