Take-Two Interactive, the parent company of Intercept Games, has announced layoffs affecting the Seattle-based studio and its critically acclaimed game, Kerbal Space Program 2. As part of its cost reduction program, Take-Two laid off approximately 70 employees from Intercept Games, according to a recent Worker Adjustment and Retraining Notification (WARN) notice filed in Washington state.

While Intercept Games has not officially confirmed the closure, the WARN notice specifically listed Take-Two Interactive as the company responsible for the layoffs, indicating that it is Intercept Games that has been impacted. Intercept Games, known for the original Kerbal Space Program, did not respond to IGN's request for comment, but their website currently lists three job openings based in Seattle.

In a statement to IGN, a Take-Two spokesperson declined to confirm the closure of Intercept Games directly but emphasized the company's commitment to reducing staff across all its studios. They did, however, mention that Take-Two's publishing label, Private Division, will continue to offer post-launch support for Kerbal Space Program 2, indicating that Intercept Games may no longer be operational.

These recent layoffs come as part of Take-Two's broader efforts to streamline its operations, eliminate certain projects in development, and optimize its organizational structure. The company previously announced a cost reduction program in April, aiming to enhance its margin profile while still investing in future growth.

Intercept Games joins the growing list of studios affected by layoffs within the video game industry. Jason Schreier of Bloomberg has independently confirmed that Roll7, the developer behind OlliOlli World, will also be closing its doors as a result of Take-Two's restructuring.

It is worth noting that Take-Two Interactive had previously announced in March that it would be cutting approximately 5 percent of its workforce, amounting to 579 employees, as well as canceling several projects. The moves were part of the company's cost reduction plan, despite CEO Strauss Zelnick initially stating that there were no plans for layoffs.

Kerbal Space Program 2, the sequel to the popular 2015 space simulation game, has faced mixed reviews since its early access release over a year ago. Critics and players have criticized the game for poor performance and bugs. Nonetheless, Private Division, Take-Two's publishing label, plans to continue updating and supporting Kerbal Space Program 2.

The video game industry as a whole has been hit hard by layoffs, with major players such as EA, PlayStation, and Xbox also undertaking workforce reductions. The impact of these layoffs on the industry and the affected employees continues to be a significant concern.

As the situation unfolds, Intercept Games' future remains uncertain, and the gaming community awaits further updates on the fate of Kerbal Space Program 2.