Take-Two Has “No Current Plans” For Layoffs But Cost Reduction Program Is Underway

Take-Two CEO Strauss Zelnick clarified in the third quarterly financial briefing that the company is helming a massive cost reduction program. However, concerns about a new streak of layoffs were palpable in the industry after the document was made public. Take-Two Strauss Zelnick tackled the concerns in a new interview with IGN, clarifying that there are “no current plans” for layoffs amidst the new program.

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,” said the CEO.

The CEO confirms that layoffs are not in discussion at the moment, and current plans only pertain to dealing with other massive expenses, like marketing. In the original earnings call, Strauss mentioned that the cost reduction program seeks to maximize the margins of Take-Two across the entire business while still chasing development. 

We are currently working on a significant cost reduction program across our entire business to maximize our margins, while still investing for growth. These measures are incremental to, and even more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our eagerly-anticipated release schedule.”

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Additionally, the company aims to achieve a “greater operating leverage” as the upcoming awaited games begin to launch in the future.