Take-Two has officially announced its plans for layoffs as part of its $50 million “cost reduction program” that got announced on Monday. It was made known during the earnings results for its fiscal third quarter that 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,” the company said.
Take-Two Departments Affected
Take-Two revealed that the program will include personnel, processes, infrastructure, and other areas, and will focus more on corporate and publishing functions.
The company revealed that this program is part of the over $100 million of cost synergies that it expects to realize after combining with Zynga.
“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.”
CEO Clarifies Plans
In a recent interview with media outlet GamesIndustry.biz, Take-Two CEO Strauss Zelnick assured that they are not doing a broad-based reduction in its workforce. Here’s what he has to say:
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.
We don’t expect any kind of broad-based reduction in force. We are going department by department and trying to drive efficiency.
