(Reuters) -Take-Two Interactive Software will lay off about 5% of its workforce, or around 600 employees, the publisher of the "Grand Theft Auto" franchise said on Tuesday, as the video-gaming industry extends its more than two-year long job cuts.
The company will also scrap several projects in development as part of a cost-reduction plan, which is expected to result in total charges of up to $200 million. It declined to name the projects that have been canceled .
Take-Two (NASDAQ:TTWO) said the move is expected to drive more than $165 million of annual cost savings.
The company's shares were 1% higher in extended trading. They have fallen nearly 10% so far this year.
The move aligns Take-Two with Tencent-owned Riot Games, Electronic Arts (NASDAQ:EA) and Japan's Sony Corp (TYO:6758) in trimming workforce this year due to uncertain spending from consumers after the pandemic-era boom.
PC and console gaming revenue growth is expected to remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, according to research firm Newzoo.
Canceled projects will account for as much as $140 million of the total charges, while severance and employee-related costs are expected to be up to $35 million, it said. Take-Two will also reduce some office space as part of the move.
The company, which had 11,580 full-time employees as of March 2023, last month agreed to buy "Borderlands" maker Gearbox for $460 million in a cut-price deal at a time consolidation is driving up prices for makers of well-known titles.
Take-Two has been focused on the development of the next installment in the best-selling "Grand Theft Auto" franchise, but some reports have said the title could be delayed into 2026 from 2025.