On Monday afternoon, Take-Two Interactive had its Q3 2023 earnings call. Along with many other announcements and great sales figures, Take-Two disclosed that it would be making $50 million in layoffs.
“Personnel, processes, infrastructure, and other areas, with a primary focus on corporate and publishing functions,” are all included in the program.
Take-Two claims that the “current backdrop” and their “strong dedication to efficiency” are the reasons for the changes. This comes after the business reported $1.41 billion in sales but a net loss of $153.4 million. In terms of revenue particularly, the $1.41 billion marks an increase of 56% from the previous year.
CEO Strauss Zelnick stated that he does not anticipate the cuts to result in a significant decrease in the number of employees in an interview with GamesIndustry.biz.
We keep advancing and strengthening our development teams, he said. “We don’t anticipate any force reductions based on kioads. We are working department by department to increase productivity.
When asked about their start date, the corporation stated that the reduction would start during the current quarter.
The additional $100 million in “cost synergies” from its merger with Zynga were also mentioned. “Take-Two believes that these actions, along with its focus on profitably growing its scale, will enable the company to maximize its margins as it delivers on its expected growth trajectory over the next few years,” they said.
We have contacted Take-Two to get more information on the reductions and cuts for the Take-Two-affiliated studios.