Take-Two posted a legally-required notice that it is laying off 70 workers and closing a studio in Seattle. This is part of mass layoffs announced across Take-Two. This has also been mentioned by Games Industry.biz, although without much more details than what I have here (at time of writing).

The only Take-Two studio in Seattle is Intercept Games, who have been making Kerbal Space Program 2. We also know that Intercept had about 65-70 people working there (half of which were on KSP2, half of which were on an unannounced project).

Various KSP2 devs have also posted on social media that they have been impacted by layoffs (not sure about the rules re: linking social media profiles, so I'll hold off).

We may or may not have more news in the coming days. It's hard times in the industry right now, and my heart goes out for everyone affected.

EDIT: From Game Developer:

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.

...

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

Hello once again! I wanted to show y'all some pictures, because today we've hosted our first event.

Check it out!

Today's event is a birthday party for a little girl, her family and friends are all here setting up for a meal and they've got a neat inflatable for the kids to play on. She's turning 2 and folks decided to just go all out for it.

I wanted to share too, how this event is helping out the overall plan. The little girl's grandmother was a caterer before they moved here. She doesn't want to do catering professionally anymore, because the job wore her out. She stopped doing it after they moved, because she was exhausted. The way she tells it, it's a pretty typical story of being worked to the bone for rewards that aren't fulfilling, for a larger business that was mostly just about growth/performance. Turned her off to the whole idea, because she was sick of being pushed past her limits. We got to talking with her and shared some of our own plans - to be a local space, small scale and low key, not trying to grow super fast or get bought by something bigger.

As we shared all this I noticed her grandmother's demeanor change, what was at first a negative recollection turned into a sort of hopeful interest. Turns out she would like to do catering again, she'd just like to do it without the pressures of a larger scale business. I said at one point, that our goal was to be a good place, not the biggest business or the richest people. She gave me her number, and said to reach her whenever we wanted.

I couldn't ask for a better outcome on this one, I think. They paid early too :). Anyway, I don't have just a whole lot more to say, I just wanted to show y'all some progress since I'd already written out so much. Slowly but surely, step by step, it's working out so far. Hope y'all's weekend is good, and I hope to show you more soon!