Bad news sometimes comes as a result of global issues; large corporations are beginning to shift their chips to maximize profits and reduce expenses they deem to be detrimental to business. The first to take the plunge was Microsoft, which we already know has laid off many employees for various reasons and circumstances. Now it’s the turn of Take-Two, who seem to be doing the same very soon.
The owners of Rockstar Games and 2K Games are starting to make headlines due to their plan to cut costs through layoffs and other internal strategies, including necessary corporate moves for them. This is part of its earnings plan for its third fiscal quarter ending in December 2022.
In light of the current environment and Take-Two’s strong commitment to efficiency, the Company is implementing a cost reduction program that is expected to generate over $50 million in annual savings, which will begin to materialize in the fourth quarter of its 2023 fiscal year
Cut $50 million in costs, layoffs and quite a few cuts
In an interview conducted by gamezindustry.biz, Strauss Zelnic, CEO of Take-Two, comments that this is not a massive layoff just to put a hole in the finances. In reality, and according to the leader, the idea is to reduce just enough to bring current employees to integrate into a culture of efficiency to be more productive with fewer hands.
We continue to support and strengthen our development teams, and where we have overhead, we must be very diligent in reviewing it.
We don’t expect any sort of large-scale force reduction. We go department by department and try to gain efficiency
It would seem that they seek to optimize revenue from a business model combined with other companies, the objective being to look in each department of the company for things to improve profit:
The program includes people, processes, infrastructure and other areas, and will primarily focus on corporate and editorial functions.
In light of the current environment and Take-Two’s strong commitment to efficiency, the Company is implementing a cost reduction program that is expected to generate over $50 million in annual savings, which will begin to materialize in the fourth quarter of its 2023 fiscal year
For the moment we do not know much more about this subject. It is clear that there will be another wave of layoffs in the video game industry and this is not a good indicator of the current state of the market and its working environment.
