Grand Theft Auto maker Take-Two is laying off five per cent of its workforce as part of a new cost cutting program.

That's according to an SEC filing from the company, in which it said it hoped to save $165 million per year as a result of these cuts. That five per cent of staff represents around 580 people.

Take-Two predicts it will incur charges of between $160 million and $200 million; $25 million to $35 million is related to employee severance, while another $15 million-to-$25 million is office space reduction.

The big charges come from around $120 million-to-$140 million related to the cancellations of in-development projects.

"As part of these efforts, [Take-Two] is rationalising its pipeline and eliminating several projects in development and streamlining its organisational structure, which will eliminate
headcount and reduce future hiring needs," the company wrote.

This is the third cost reduction plan that Take-Two has enacted since the start of 2023. The first was designed to cut $50 million in spending, while a second was announced earlier this year. CEO Strauss Zelnick said that this was "significant" and "more robust" than the first.