Take-Two planning layoffs as part of $50 million ‘cost reduction program’
The program “will primarily focus on corporate and publishing functions”
Take-Two looks set to make layoffs as part of a $50 million “cost reduction program” announced on Monday.
The Rockstar and 2K Games owner revealed the plan as part of its earnings results for its fiscal third quarter which ended in December 2022.
“In light of the current backdrop and Take-Two’s strong commitment to efficiency, the Company is implementing a cost reduction program expected to yield over $50 million of annual savings, which it will begin to realize in the fourth quarter of its Fiscal Year 2023,” it said.
“The program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions.
“In an interview with GamesIndustry.biz, Take-Two CEO Strauss Zelnick said the company isn’t planning a “broad-based reduction” in its workforce.
“We continue to support and build our development teams, and where we have overhead, we have to be very diligent about looking at the overhead,” he said.
“We don’t expect any kind of broad-based reduction in force. We are going department by department and trying to drive efficiency.”
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“This cost reduction program is in addition to the over $100 million of cost synergies the Company expects to realize from its combination with Zynga, and is not expected to impact the delivery of its robust multi-year pipeline,” Take-Two continued.
“Take-Two believes these actions, combined with its focus on profitably growing its scale, will enable the Company to maximize its margins as it delivers on its anticipated growth trajectory over the next few years.”
More details about the cost reduction plan may be confirmed shortly during Take-Two’s quarterly earnings call.