Take-Two to Reduce Workforce by 5%

Take-Two Interactive has initiated a new cost-cutting program, which will result in the layoff of approximately 5% of its workforce by the end of the year. According to an SEC filing, the company is 'rationalizing its pipeline' by eliminating several projects and streamlining its organizational structure to reduce headcount and future hiring needs. With around 11,580 full-time employees reported in its latest annual report, the layoffs are expected to affect roughly 580 people. The cost reduction program is anticipated to cost up to $200 million, comprising up to $140 million in charges from cancelled games, up to $35 million in employee severance, and up to $25 million in office space reduction expenses. This marks the third cost reduction program announced by Take-Two since February 2023. The company has reported net losses for seven consecutive quarters, with its last profitable quarter being the three months ended June 30, 2022, prior to the acquisition of Zynga.