Take-Two Announces $50 Million In Cuts During Earnings Call
Take-Two Interactive held its Q3 2023 earnings call on Monday afternoon. And while there were a number of statements made, including some impressive sales numbers, Take-Two also announced that it will be implementing $50 million in cuts.
Included in that program will be “personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions.”
The reason given for the cuts, according to Take-Two, is what they claim is the “current backdrop” and their “strong commitment to efficiency”. This comes after the company reported $1.41 billion in revenue against $153.4 million in net loss. Regarding revenue specifically, the $1.41 billion represents a 56% year-over-year increase.
In an interview with GamesIndustry.biz, CEO Strauss Zelnick says that he doesn’t expect the cuts to lead to a large reduction in staff.
“[W]e continue to support and build our development teams,” he said. “We don’t expect any kind of broad-based reduction in force. We are going department by department and trying to drive efficiency.”
As far as the timeline for the cuts, the company said that they will begin during the current quarter.
“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,” they said while mentioning the additional $100 million of “cost synergies” from its combination with Zynga.
Insider Gaming has reached out to Take-Two for more clarification on what the cuts and reductions will mean for studios under the Take-Two umbrella.