Take-Two Interactive Software, developer of the controversial Grand Theft Auto series, has announced that it will be undertaking significant job cuts in an effort to return to profit.

Take-Two Interactive Software has announced that it will be undertaking significant job cuts in an effort to return to profit.

The group, whose controversial Grand Theft Auto series allows players to assume the role of a criminal boss, revealed a £26 million drop in revenue to £104.3 million in the half year to the end of April.

The news follows the resignation of former chief financial officer Karl Winters after a shareholder revolt removed several board members. Reports suggest that shareholders were unhappy after explicit sex scenes were rumoured to have been included in one of its most popular titles, Grand Theft Auto: San Andreas, leading to many shops withdrawing the game.

The company has also been under fire for a string of alleged financial irregularities, including overstated profits and illegally backdated stock options.

Current chief executive Ben Feder said: ‘While the decisions were difficult and will unfortunately require employee layoffs, we believe these necessary actions will improve the financial and operational performance of Take-Two, leading to greater value for our shareholders.’