Take-Two has confirmed that Kerbal Space Program 2 is safe following an announcement of layoffs and the closure of the company's Seattle branch.
The layoffs will reportedly affect 70 workers in the state as part of the company's ongoing cost-reduction program. It's also part of the publisher's attempts to reduce its headcount by 5% to enhance its "margin profile while still investing for growth."
The Fate of Kerbal Space Program 2
(Photo : Intercept Games, Private Division / Screenshot taken from official website)
The announcement of the layoffs comes a few weeks after the company spent a massive $460 million acquiring Gearbox from Embracer Group. A WARN notice that was filed in Washington also showed that the company will conduct the layoffs as part of a "closure" on June 28, 2024.
The notice ensures that impacted workers are notified at least 60 days before they are laid off from the company and simply lists the impacted as "Take-Two."
However, many onlookers on social media have pointed out that the Take-Two-owned Kerbal Space Program developer Intercept Games is based in Seattle, according to GameDeveloper.
When asked about the concerns, Take-Two did not confirm whether or not Intercept Games was impacted by the layoffs. This is despite multiple Kerbal Space Program developers indicating that they recently left the studio, and one specifically used the term "laid off."
A spokesperson for Take-Two, however, explained that its Private Division publishing label will continue to support Kerbal Space Program 2. The statement noted that on Apr. 16, 2024, Take-Two announced a cost reduction program to identify efficiencies across its business.
As part of this effort, the company was rationalizing its pipeline, eliminating several projects that were still in development, and also streamlining its organizational structure. The latter means that they will eliminate headcount and reduce future hiring needs.
Read Also: Koei Tecmo Says Rise of the Ronin Sales Are Outpacing Nioh Franchise
The situation comes as Kerbal Space Program 2 has already gone through several challenging times. The project started out at Star Theory Games, which was formerly known as Uber Entertainment, said Rock Paper Shotgun.
However, the company eventually shut down after the game's publisher, Private Division, canceled their contract in 2020. The latter then founded Intercept Games to continue working on the sequel, which experienced various delays during the coronavirus pandemic.
Take-Two's Sudden Layoffs
The game was released into early access in February 2023 and players were not impressed by the sequel at the time. Some described it as a "catastrophic reentry" and was plagued by a lot of bugs at launch.
Creative director Nate Simpson on Thursday shared a development blog post regarding the forthcoming Colonies update to the game. While no one can be sure if the project is still in the works, there has been no formal confirmation that it has been canceled.
On top of the layoffs and closure in Seattle, Take-Two's efforts also affected London-based Roll7, which is the developer of the action game Rollerdrome. The parent company reportedly plans to close the studio and offer severance agreements to its employees, according to Bloomberg.
Take-Two's vice president for communications, Alan Lewis, released a statement saying that the company was "not providing additional details" regarding the layoffs. He also said that they are continuing to make updates to Kerbal Space Program 2.
Related Article: Star Wars: Hunters Update Includes New Trailer, Reveals Release Date for Nintendo Switch