“Grand Theft Auto” publisher Take-Two Interactive Software will lay off around five percent of its workforce, the company announced on Tuesday (16 April).

The move comes as the gaming industry continues a two year period of layoffs following the pandemic. 

Take-Two also announced it will be halting development of several projects in order to save costs. The cuts are expected to result in over $165m of annual savings, the company said. 

The plans mirror those of other leading gaming companies, including Sony, EA, and Riot Games, which all announced plans to cut their workforce amid a slowdown in consumer spending.

Once seen as recession-proof, the video gaming industry has seen a decrease in user growth after the Covid-19 pandemic in 2022.

The industry was also hindered by rising inflation, which led to a decrease in customer spending. Semiconductor shortages also led to a slowdown in the supply of gaming consoles.

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Console and personal computing gaming revenue is expected to remain below pre-pandemic levels until the end of 2026, according to gaming research company Newzoo.

Take-Two and Grand Theft Auto 6

Rockstar and parent company Take-Two have been focused on the development of the highly anticipated Grand Theft Auto 6.

However, the company’s stocks slumped last month when it was reported that the title could be delayed beyond its 2025 release window.

A 2018 report from MarketWatch named the previous game in the series the “most financially successful media title of all time.”