Take-Two confirms cost reduction program but has "no current plans" for layoffs
Take-Two Interactive CEO Strauss Zelnick has confirmed that another cost-cutting program is still in the works, but the company has no plans to reduce its workforce at this time.
The details:
During the publisher's recent financial report, it was stated that the company planned to implement a "significant cost reduction program" across its entire business. It was also revealed that the new program will be larger than a similar program carried out last year, which attempted to save $50 million in expenses.
The previous program, which began in early 2023, resulted in layoffs across multiple subsidiaries, including publisher Private Division, despite Zelnick's original statement that the company did not expect significant workforce reductions. This time, the CEO told IGN that there are "no current plans" for layoffs, but suggested that this could change in the future.
The company intends to focus on marketing costs specifically, as they are the publisher's "biggest line item of expense," with cuts also possible in other areas such as software, supply services, and more.
Visual Concepts Austin, a studio owned by Take-Two subsidiary 2K, laid off employees for the second time in six months earlier this week. It is unclear how many employees were affected, but employees from its art and development departments have posted about the situation on LinkedIn.
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