Take-Two Interactive Software to lay off five percent of workforce

Take-Two Interactive Software, the parent company of 2K, The Gearbox Entertainment Company, Private Division, and Rockstar Games, will lay off about five percent of its workforce, or around 600 employees, the company announced.

Several in-development projects will also be cancelled as part of a cost reduction plan expect to result in total charges of up to $200 million. Specific projects were not named.

According to Take-Two Interactive Software, the move will result in more than $165 million of annual cost savings.

Cancelled projects will account for as much as $140 million of the total charges, and severance and employee-related costs expected are expected to reach up to $35 million. Take-Two Interactive Software will also reduce some office space.

Thanks, Reuters.