Despite the continued success of some of its major titles, Take-Two Interactive has seemingly indicated it will implement layoffs as part of its “cost reduction program.”
The company mentioned the possible move as part of its latest financial results for the fiscal third quarter ending in December 2022. According to Take-Two, it plans to save up to $50 million, which could lead to layoffs in the future.
“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. “The program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions.”
The cost reduction program may mean layoffs, but Take-Two CEO Strauss Zelnick spoke with GamesIndustry.biz and clarified the company doesn’t have a “broad-based reduction” plan for its employees.
“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,” Zelnick said. “We don’t expect any kind of broad-based reduction in force. We are going department by department and trying to drive efficiency.”
The possibility of releasing some of Take-Two’s personnel comes after the recent feat achieved by two of its major games, namely Red Dead Redemption 2 and Grand Theft Auto V. Take-Two announced that the former has sold over 50 million copies, as well as being the third best-selling game on Steam last year.
The latter, on the other hand, has now sold over 175 million units.
