Take-Two Announces $50 Million Cost-Reduction Program for Q4 Fiscal Year 2023
Video game company Take-Two, which owns popular studios Rockstar and 2K Games, is implementing a cost-reduction program that is expected to yield over $50 million in annual savings. The program will begin in the fourth quarter of the company’s Fiscal Year 2023 and will focus on corporate and publishing functions.
According to Take-Two’s Q3 2023 earnings report, the program will include personnel, processes, infrastructure, and other areas. CEO Strauss Zelnick has stated that the company will not be conducting mass layoffs but will instead be focusing on driving efficiency department by department.
In an interview with GamesIndustry.biz, Zelnick emphasized that the company will continue to support and build its development teams. The goal of the program is to reduce overhead and increase efficiency without compromising the company’s ability to create and produce high-quality games.
Take-Two has stated that layoffs are “not the plan” but that some jobs may be lost. Zelnick explained that it’s not a guarantee for lifetime employment, but any job loss would be modest. IGN reported that Take-Two CEO Strauss Zelnick said that while there will be certain instances where jobs will be lost, there won’t be any broad-based reduction in force.
During the earnings report, Take-Two also addressed the commercial shortcoming of Marvel’s Midnight Suns. The company cited a non-ideal release window as a potential reason for the game’s sub-par sales. Despite this setback, the company remains committed to producing high-quality games and driving efficiency through the cost-reduction program.