Update: Take-Two confirms Kerbal Space Program 2 is safe despite Seattle layoffs

Update (05/02/24): Bloomberg is reporting that Take-Two intends to shut down Intercept Games.

Although Take-Two wouldn't disclose how the studio has been impacted by the 70 layoffs in Seattle, where Intercept is located, documentation reviewed by Bloomberg indicates the studio will be shuttered.

Take-Two had already told Game Developer it will continue to make updates to Kerbal Space Program 2.

Original story: Take-Two is laying off 70 people in Seattle as part of an ongoing cost-reduction program.

The publisher is currently attempting to reduce its headcount by 5 percent to enhance its "margin profile while still investing for growth." It announced those layoffs just weeks after spending $460 million acquiring Gearbox from Embracer.

A WARN notice filed in Washington shows the company will be laying off 70 workers in Seattle as part of a "closure" on June 28, 2024. The notice, which ensures impacted workers are notified 60 days before they're laid off, simply lists the impacted company as 'Take-Two.'

A number of onlookers on social media have pointed out that Take-Two-owned Kerbal Space Program developer Intercept Games is based in Seattle, raising concerns about the future of the studio.

Private Division still supporting Kerbal Space Program 2

When approached for comment by Game Developer, Take-Two wouldn't confirm whether Intercept Games has been impacted by the cuts—despite multiple Kerbal Space Program developers indicating they recently left the studio, with one expressly stating they were "laid off." A company spokesperson did, however, explain that its Private Division publishing label will continue to support Kerbal Space Program 2.

"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. 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," reads the statement.

"On April 18th Private Division successfully launched Moon Studio's No Rest for the Wicked. The label continues to make updates to Kerbal Space Program 2 and plans to release Wētā Workshop Game Studio's Tales of the Shire: A The Lord of the Rings Game in the second half of 2024."

At the time of writing Intercept Games has yet to comment on the situation publicly. The studio's webpage also features multiple job listings for roles in Seattle.

When pushed again on the current status of Intercept Games, Take-Two told Game Developer is has "nothing further to note."