In the midst of its “cost reduction program,” Take-Two Interactive appears to plan to shutter two of its subsidiary studios, Intercept and Roll7. This is also in the midst of a wider layoff of about 5% of its staff, approximately 600 staffers according to some estimates, and some shut-downs of internal projects.
The layoffs were first spotted when GamesIndustry.biz found a WARN notice for Intercept’s studio in Seattle on May 1, with layoff numbers essentially matching the size of the studio itself. (WARN notices are required by the US Department of Labor for closures and/or layoffs of larger workplaces.) Meanwhile, Bloomberg has seen documentation (Note: Paywall is present on Bloomberg) alleging the upcoming closure of Roll7, and reports that other Private Division staff were targeted by the layoffs as well.
“On April 16th, Take-Two announced a cost reduction program to identify efficiencies across its business and to enhance the Company's margin profile, while still investing for growth,” Take-Two shared in a statement for each day’s layoff reports, pointing to its announcement to cut back its workforce and projects. “As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs. The Company is not providing additional details on this program.”
It then touted the publishing of its recent ARPG No Rest for the Wicked, and that Kerbal Space Program 2 will continue its updates. We’re not sure how that one’s going to work, though.
London studio Roll7 is best known for its OlliOlli series, Dead Ends and most recently Rollerdrome. Meanwhile, Intercept is beloved for its mostly-realistic Kerbal Space Program, the spaceship-building game first launched over a decade ago. Technically, both studios are owned by Private Division, which is further owned by Take Two. However, the latter’s overarching leadership means that, at the very least, it can tell subsidiaries to make these sorts of decisions.
Interestingly, about a month and a half ago, Take Two’s CEO told IGN in an interview that it didn’t have any plans to invoke layoffs as it trimmed off its financial fat. On the other hand, it just acquired Gearbox, the studio behind Borderlands. Anything goes in this industry, though, we suppose.
