Take-Two Interactive, the publisher of the Grand Theft Auto video game series, said in a filing that it is cutting down on development projects and staff to streamline its organizational structure.

The announcement follows CEO Strauss Zelnick's statements in February that there were "no plans" for layoffs as part of the company's budget cutbacks, according to IGN Southeast Asia.

Job Cuts at Take-Two Could Potentially Impact Nearly 600 Employees

In the filing on Tuesday, April 16, Take-Two recently disclosed that it is discontinuing several projects and laying off around 5% of its staff, comprised of about 579 employees. As of the conclusion of its most recent fiscal year, Take-Two employed 11,580 full-time workers, Bloomberg reported.

The business expects to spend up to $200 million on the downsizing effort. This includes $35 million for employee-related charges and $140 million from canceled projects.

By the end of 2024, Take-Two's cost-cutting strategy will be complete.

READ NEXT: GameStop Reports 19% Decline in Fourth Quarter Revenue, The Biggest Fall in 9 Months

There Have Been Signs of Cost Reduction Efforts Since at Least February

The idea has been floating around since February. Zelnick previously said, "Our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, and supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans."

Previous statements by Take-Two indicated that the company had completed "right-sizing" its operations and was planning to enter a growth phase, with the anticipated release of GTA 6 in 2025 playing a role.

Take-Two is the newest major gaming firm to see widespread layoffs this year, along with Unity Software, Riot Games, and Microsoft's games business. Executives are being cautious with the hundreds of millions of dollars and years needed to produce new games due to the industry's reduction in size.

READ MORE: Virgin Media's O2 Recycle Program Offers To Buy Old Gaming Consoles -- Here's How You Can Earn