[UPDATE: Take-Two has since denied that development jobs are under threat, but has confirmed that a corporate restructure is in progress.]

Up to 400 Take-Two staff could end up being laid off by the publisher.

According to MCV sources the games giant has to make some tough decisions as it prepares a restructuring effort that would improve the company's finances.

20 per cent of its 2,000-strong global workforce would face the axe under the plans.

MCV understands that cuts will be made across both its publishing and studio operations - and we have heard word that one or two staff at some divisions have already been made redundant.

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Take-Two's HQ is in New York, with its international base in Windsor, UK.

It has 14 studios, including six run by subsidiary Rockstar Games, based in the UK, USA, Australia and China. Take-Two also has three QA studios and sales and marketing teams dotted across North America, Europe and Australasia.

Take-Two has already pared down part of its business. At the close of 2009 the firm sold off its US distribution business Jack of All Games, raising $43.25 million, days after announcing its full year financials showed a net loss of $137.9 million, with revenues down 37 per cent to $968.5m.

In the meantime Take-Two shareholder American billionaire Carl Icahn has ramped his stake in the firm up to 12 per cent, and nominated new board members - the machinations have sparked speculation that he is attempting to steer the company towards a sell-off. Take-Two famously deflected an aggressive takeover by EA back in 2008.

The firm's next big release is the long-awaited BioShock 2, which has a global launch set for next week on Tuesday, February 9th.