Gearbox Entertainment has been struck by layoffs shortly after revealing its acquisition by Take-Two Interactive. Speculations about the company's sale were put to rest on March 27 when Embracer Group confirmed the $460 million deal to offload Gearbox. This move follows Embracer's year-long strategy of shedding subsidiaries to boost financial liquidity.

Renowned for the Borderlands series, Gearbox has evolved over 25 years into a multifaceted entity covering game development, publishing, and TV and film production. Embracer's decision to sell Gearbox amid debt reduction efforts was not unexpected given the company's valuable portfolio.

The news of Gearbox's acquisition by Take-Two was met with optimism, sparking anticipation among fans for the company's future. However, the atmosphere soured when reports emerged within a day of staff being let go unexpectedly. The scale of the layoffs remains unknown, but former PR Manager Jennifer Locke's statement about her own dismissal, alongside many others, suggests a sizable impact.

Gearbox Employees Speak Out on Layoffs

Employee skepticism often follows company acquisitions in the gaming industry, as new ownership frequently initiates layoffs to offset acquisition costs. This pattern was evident post-Microsoft's $68.7 billion acquisition of Activision Blizzard in October 2023, leading to over 2,000 job cuts and a subsequent surge in Microsoft's market value.

Yet, job insecurity is not exclusive to acquisition scenarios. The games industry is known for its volatility, with teams expanding for projects and contracting post-release. Poor game performance also swiftly affects staff. The past year has seen a surge in layoffs, closures, and acquisitions, contributing to industry uncertainty that hopefully subsides soon.