Recently, Take-Two has shared its plans for a “significant cost reduction” without any immediate layoffs for its employees.
The announcement was made in a Take-Two earnings report, where the company emphasized:
“We are currently implementing a significant cost reduction program across our entire business to maximize our margins while still investing for growth. These measures are incremental to, and more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our outstanding release schedule.”
In an interview with IGN, CEO Strauss Zelnick confirmed that there are no intentions for staff layoffs at the moment. He stated:
“We haven’t put any meat on the bones of that yet. I would just note that our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans.”
However, it’s worth noting that Take-Two had a similar cost reduction plan last year, during which the company did end up laying off an undisclosed number of employees, as reported by Games Industry.biz.
The gaming industry has seen a wave of layoffs in recent months, with companies such as 2K, Microsoft, Riot, and others letting go of a significant number of employees.
For more updates from the Take-Two earnings report, be sure to check out our story on the outstanding sales of GTA 5, which has sold over 195 million units, and the delay of the latest game from Ori dev, No Rest for the Wicked.