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

Take-Two CEO admits that it will not cull the jobs of employees anytime soon.

Story Highlights

  • Take-Two Interactive’s third quarterly financial briefing revealed that it is working on a cost reduction program.
  • The company CEO, Strauss Zelnick, said in an interview that it has “no current plans” for layoffs amid the program.
  • Marketing is the biggest expense that the cost reduction program is seeking to tackle in the future.

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.

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Source
Take-Two Interactive Third Quarterly EarningsIGN

Shameer Sarfaraz is a Senior News Writer on eXputer who loves to devoutly keep up with the gaming and entertainment industries. He has a Bachelor's Degree in Computer Science and several years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. His articles have been cited by VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more. Experience: 4+ Years

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