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Take-Two Interactive is the latest company in the tech industry to confirm that it will be having a round of layoffs.
Take-Two Spokesperson Alan Lewis says that the effect of the layoffs on the development was “minimal” and that the cuts “will better align our organization with our long-term priorities.”
“We can confirm that there have been targeted reductions in our US teams, primarily in corporate operations and label publishing, which will better align our organization with our long-term priorities,” Take-Two spokesperson Alan Lewis said. “We continue to make strategic investments in our talent and technology to deliver our long-term pipeline, and the impact of these changes on our US development teams has been minimal.
“Outside of the US, we have begun procedures in compliance with a local law that we anticipate may result in similar reductions. Take-Two has experienced exponential growth in recent years, and we are taking these necessary steps to position the company for another extended period of success.”
Bloomberg’s Jason Schreier further states that they are laying off people in their Private Division publishing label as well as other business units. Private Division is Take-Two’s indie game publisher has previously launched hits like OlliOlli World, Rollerdrome, and Kerbal Space Program.
Cost Reduction Plan
Take-Two first announced the layoffs last months as part of a $50 Million USD cost reduction plan. Speaking about the layoffs in February of 2023, Take-Two said the following about their new cost reduction scheme:
“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 program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions”.
“This cost reduction program is in addition to the over $100 million of cost synergies the Company expects to realize from its combination with Zynga, and is not expected to impact the delivery of its robust multi-year pipeline,” Take-Two continued.
“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.”
