Take-Two will lay off staff after announcing a $50 million "cost-cutting plan"

CTOnews.com, February 7 (Xinhua)-- Take-Two plans to cut jobs as part of a $50 million "cost-cutting plan" announced Monday.

CTOnews.com learned that the parent company of 2K Games, Rockstar Games, disclosed the plan in its fiscal third quarter ended December 2022. "given the current background and Take-Two 's strong commitment to efficiency, the company is implementing a cost-cutting program that is expected to generate annual cost savings of more than $50 million, which will begin in the fourth quarter of fiscal 2023," the company said. The plan covers people, processes, infrastructure and other areas and will focus on corporate and publishing functions. "

Strauss Zelnick, chief executive of Take-Two, said in an interview with GamesIndustry.biz that the company had no plans for "mass layoffs". He said: "We continue to support and build our development team, and where we have spending, we have to focus very diligently on spending. We do not expect any form of mass layoffs. We are working on a department-by-department basis and trying to improve efficiency."

Take-Two believes that these initiatives, coupled with its focus on the scale of profitable growth, will enable the company to maximize its profit margins as it achieves the expected growth trajectory over the next few years.