Take-Two laying off 5% of staff
In addition to approximately 580 jobs cut, publisher's latest cost reduction program also involves cancelling projects, streamlining organizational structure
Take-Two Interactive is embarking on another cost cutting program, and this one will see the company layoff about 5% of its employees by the end of the year.
"As part of these efforts, the company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs," Take-Two explained in an SEC filing stating that the board of directors approved the new program today.
In its latest annual report, Take-Two reported having 11,580 full-time employees, which would put the layoffs at approximately 580 people.
Take-Two expects the cost reduction program to cost up to $200 million, with as much as $140 million in charges coming from the cancelled games, up to $35 million in employee severance and similar charges, and as much as $25 million more in office space reduction expenses.
This is the third such program Take-Two has announced since the beginning of February 2023.
The original cost reduction plan sought to eliminate $50 million in annual spending, and Take-Two CEO Strauss Zelnick said at the time that "we don't expect any kind of broad-based reduction in force."
The second cost reduction program was announced a little over two months ago, and when asked about layoffs, Zelnick would only say the second plan was "more robust" than the first one.
Take-Two has posted net losses for seven straight quarters. Its last quarter reporting a net profit was the three months ended June 30, 2022, the quarter before the publisher closed on its acquisition of Zynga.