Take-Two Interactive, a prominent player in the gaming industry, has recently announced layoffs in its Seattle office as part of a cost-reduction initiative. The company is aiming to reduce its workforce by 5 percent to improve its profit margins while still focusing on growth.

The layoffs come shortly after Take-Two’s significant acquisition of Gearbox Entertainment for $460 million. A WARN notice filed in Washington reveals that 70 employees in Seattle will be affected by the layoffs, scheduled for June 28, 2024.

Speculations arose regarding the fate of Intercept Games, the developer behind Kerbal Space Program, as the studio is based in Seattle. While Take-Two has not confirmed whether Intercept Games will be impacted by the layoffs, several developers associated with Kerbal Space Program have indicated their departure from the studio, with some explicitly stating they were laid off.

Despite the uncertainties surrounding Intercept Games, Take-Two’s Private Division publishing label has assured continued support for Kerbal Space Program 2. The company emphasized its commitment to streamlining operations and reducing headcount as part of a broader cost reduction program.

Private Division recently launched Moon Studio’s No Rest for the Wicked and has plans to release Wētā Workshop Game Studio’s Tales of the Shire: A The Lord of the Rings Game later in 2024. Intercept Games, however, has remained silent on the matter, with job listings still active on the studio’s website.

When pressed for further details, Take-Two reiterated its stance of not providing additional information on the cost reduction program. The company emphasized its focus on efficiency and growth while maintaining a level of discretion regarding internal restructuring.

As the situation unfolds, industry observers continue to monitor the developments within Take-Two and its subsidiaries. The gaming community remains attentive to any updates regarding Intercept Games and the future of Kerbal Space Program.