Take-Two announces the layoff of 5% of its workforce and the cancellation of several games
, by Thibaut
Back in February, Strauss Zelnick confirmed his intention to not lay off any of his employees despite the difficult situation of the video game industry. However, the CEO of Take-Two Interactive seems to have had a change off heart.
The American publisher will be shedding 5% of its workforce, which would represent around 579 people out of the 11,580 counted in March 2023. The company's objective is to save $165 million a year. The Board of Directors has given the green light to the plan with the aim of increasing the firm's profit margins.
Added to this is the fact that several games in development will be cancelled and other projects halted. These changes will all take place between now and the end of 2024.
Take-Two Interactive plans to spend approximately $200 million on reducing its teams, which equates to $140 million on project cancellations and $35 million in severance costs for those let go. Finally, between $15 and $25 million will be spent on reducing workspace for certain teams.
Source: bloomberg.com