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."

The company I work for laid off half of my office this week. I'm one of the survivors, and trying to process what happened.

The company has been transparent about revenues. However, we had no idea that we would be so badly penalized for management choices that created significant operating cost overruns in the face of a projected short-term demand decline. I've lost half the members of my immediate team, good friends, people whose work and thoughtfulness I deeply respected. The entire department structure is being upended. The harshness of the selection for people who were being laid off included a teammate who's in the hospital, parents of young children, people on the edge of retirement. I'm suspicious and extra hostile towards the company - it's very significant to me that all the people of color and people who've had recent medical leave are among the lost.

It's not the first time I've watched and survived a company's poor management and bad choices, but this is by far the worst. I've worked very hard at staying professional with the customers this week. I'm still inwardly seething with rage. I'm trying to figure out how to be supportive to the people who are leaving. I'm trying to figure out how to help a team lead who's in his first management job, and is totally devastated and nearly frozen with helplessness. I'm decent at my job, but don't know why I was kept and others with equal or greater skills were let go. I don't feel good about what qualities I might have had that corporate desired to keep - dutifulness, compliance, amiability, reticence?

At the same time, I'm looking at months of double workload even though corporate management claims they'll outsource part of the duties (so that's another symptom that I'm replaceable) and manage the task pipeline. There's a frankly insulting retention bonus if I stay for another year. We've gotten the usual anodyne HR garbage about the employee assistance program and coping skills. The corporate management's left us with the ominous "stay tuned for further announcements over the coming weeks".

I don't have a lot of choices here. I'm trying hard to stay focused on the present, without looking over the cliff of dread at the future. At the moment, I'm the sole support for our household and source of health insurance. My spouse is badly burnt out, and I don't want him to look for work a minute before he's healthy and enthusiastic about a job. I'm a late-50's end-career professional who wouldn't normally have much interest in restarting yet again elsewhere. I very deliberately chose this company, job and location, liked the work I was doing, the people I was doing it with, and I was looking forward to building on it. There's still the possibility that our half-vacant remote office will be closed and consolidated with the corporate headquarters. I have less than zero interest in relocating, and plan to keep separated coworkers who live here as personal friends.

I'll be grateful to hear any advice on coping with this situation, and hope the replies will be helpful to others in future.