Take-Two Announces Cost-Savings Measures: Layoffs and Project Cancellations, Contradicting Previous Statements from CEO

Thursday, 08 February 2024New York City, New York, USA United States of America

Technology

CEO previously mentioned no plans for layoffs, now 5% workforce reduction

Expected expenses up to $200 million

Grand Theft Auto 6 projected as Calendar 2025 launch with no confirmed release date

Net bookings projected above $7 billion in fiscal year 2025

Take-Two announces cost-saving measures with layoffs and project cancellations

Take-Two Announces Cost-Savings Measures: Layoffs and Project Cancellations, Contradicting Previous Statements from CEO

Take-Two Interactive Software Inc., the video game company behind Grand Theft Auto, announced plans for a cost-savings drive that includes laying off 5% of its workforce and canceling some projects. According to a filing on April 17, the company expects expenses related to these measures to reach up to $200 million.

However, in an interview with Variety published on February 8, Take-Two CEO Strauss Zelnick mentioned that there are currently no plans for layoffs as part of the cost reduction plan. Instead, marketing and third-party expenses are being targeted for optimization without headcount reduction.

Take-Two's fiscal year 2025 financials have not been finalized yet, but net bookings are projected to be above $7 billion at that time. The company reported a net loss of 54 cents per share on $1.34 billion in net bookings for the most recent quarter and revised its forecast for fiscal year 2024 to between $5.25 to $5.3 billion.

Grand Theft Auto 6 is currently projected as a Calendar 2025 launch according to Take-Two, but no specific release date has been confirmed yet.

Despite the cost reduction measures, Take-Two remains optimistic about its future growth prospects.

Confidence

85%

Doubts

Are there any other cost-saving measures besides layoffs and project cancellations?
Is the exact number of projects being canceled known?

Sources

95% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand 'Grand Theft Auto' Maker Take-Two to Lay Off 5% of Staff, Drop Some Projects Bloomberg News Now Cecilia D'Anastasio Wednesday, 17 April 2024 07:55 Unique Points Take-Two plans to lay off 5% of its workforce. $35 million will be spent on employee-related costs. Accuracy Take-Two is currently working on a cost reduction program to maximize margins. Marketing is the biggest expense line item for Take-Two. Take-Two has no current plans for layoffs as part of the cost reduction program. Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (100%) None Found At Time Of Publication
90% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand Take-Two CEO Says They Have 'No Current Plans' for Layoffs Amid Cost Reduction Program IGN (Imagine Games Network) Thursday, 08 February 2024 21:18 Unique Points Take-Two is currently working on a cost reduction program to maximize margins. Take-Two has no current plans for layoffs as part of the cost reduction program. Accuracy Take-Two plans to lay off 5% of its workforce. Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (0%) None Found At Time Of Publication
95% The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as: (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20 A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand Take-Two CEO: ‘GTA 6’ Still Set for 2025, ‘Significant’ Cost Cuts Coming Variety Jennifer Maas Thursday, 08 February 2024 23:01 Unique Points Take-Two Interactive is implementing a 'significant' cost reduction plan CEO Strauss Zelnick mentioned no plans for layoffs as first resort in savings Marketing and third party expenses, vendor charges are areas for optimization without headcount reduction Grand Theft Auto 6 is currently projected as a 'Calendar 2025' launch according to Take-Two Take-Two CFO Lainie Goldstein mentioned financials for fiscal year 2025 are not finalized and will be released in May, with net bookings tracking above $7 billion at this time. Take-Two reported a net loss of 54 cents per share on $1.34 billion in net bookings for the most recent quarter Take-Two revised its net bookings forecast for fiscal year 2024 to between $5.25 to $5.3 billion Accuracy Take-Two is implementing a 'significant' cost reduction plan There are no plans for layoffs as first resort in savings Deception (100%) None Found At Time Of Publication Fallacies (100%) None Found At Time Of Publication Bias (100%) None Found At Time Of Publication Site Conflicts Of Interest (100%) None Found At Time Of Publication Author Conflicts Of Interest (100%) None Found At Time Of Publication