Approximately 5% workforce layoffs, affecting around 580 employees
Expected to save over $165 million yearly with up to $200 million in charges
In process of purchasing Borderlands developer Gearbox for $460 million
Take-Two Interactive announces cost reduction program
Take-Two reported net losses for seven straight quarters before a net profit in June 2022
Third such program announced since February 2023
Take-Two Interactive, the gaming company behind popular franchises such as Grand Theft Auto, NBA 2K, and Bioshock, has announced a cost reduction program that includes layoffs and project cancellations. According to multiple reports, approximately 5% of the company's workforce will be let go by the end of this year. This equates to around 580 employees out of the reported 11,580 full-time employees.
The cost reduction program is expected to save Take-Two over $165 million per year and cost up to $200 million in charges. The company has not specified which teams or projects will be affected by the layoffs or cancellations. However, it's worth noting that this is the third such program announced by Take-Two since February 2023.
Take-Two reported net losses for seven straight quarters, with its last quarter reporting a net profit being in June 2022. The company is also in the process of purchasing Borderlands developer Gearbox for $460 million.
This news follows a trend of mass layoffs in the gaming industry since 2023. It's important to note that all sources used in this article have an overall score above 90, indicating their credibility and reliability.
Take-Two Interactive is currently in the process of purchasing Borderlands developer Gearbox for $460 million
Accuracy
Approximately 5% of employees will be laid off (Article: 'Take-Two Interactive is laying off approximately 5% of its global workforce', OtherArticles: ['Take-Two Interactive is laying off approximately 5% of its employees by the end of the year.', 'Take-Two is laying off around 5% of its workforce, which is approximately 580 employees.'])
The cost reduction program also involves cancelling several projects (Article: 'The company will scrap several projects in development', OtherArticles: ['The cost reduction program also involves cancelling several projects and streamlining organizational structure.', 'Take-Two is cancelling several projects in development, which will result in a loss of between $120 million and $140 million for the company.'])
Approximately 580 jobs will be cut (Article: 'Approximately 579 employees will be affected by the layoffs', OtherArticles: ['Approximately 580 jobs will be cut as part of the cost reduction program.', 'Take-Two is laying off around 5% of its workforce, which is approximately 580 employees.'])
The cost reduction program is expected to cost up to $200 million (Article: 'Take-Two Interactive reported having 11,580 full-time employees in its latest annual report', OtherArticles: ['Take-Two Interactive reported having 11,580 full-time employees in its latest annual report.', 'The cost reduction program is expected to cost up to $200 million.'])
Take-Two has posted net losses for seven straight quarters (OtherArticles: ['Take-Two has posted net losses for seven straight quarters.'])
Take-Two Interactive is laying off approximately 5% of its employees by the end of the year.
Approximately 580 jobs will be cut as part of the cost reduction program.
Take-Two Interactive reported having 11,580 full-time employees in its latest annual report.
The cost reduction program is expected to cost up to $200 million, with as much as $140 million coming from cancelled games.
Accuracy
Approximately 5% of employees will be laid off.
The cost reduction program involves cancelling several projects.
Approximately 580 jobs will be cut.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The author provides clear and factual information about the number of layoffs and cost reduction measures taken by Take-Two Interactive. There are no explicit fallacies in the text. However, there is an instance of an appeal to authority when the author quotes Take-Two's statement about eliminating projects and streamlining organizational structure. This does not detract significantly from the overall score as it is a minor infraction.
"As part of these efforts, the company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs,"
"we don't expect any kind of broad-based reduction in force."
Take-Two is cancelling several projects in development, which will result in a loss of between $120 million and $140 million for the company.
Take-Two's board of directors approved the cost cutting measures to identify efficiencies and enhance the company’s margin profile while still investing for growth.
Accuracy
Take-Two is laying off approximately 5% of its workforce
The company will scrap several projects in development
Approximately 580 jobs will be cut as part of the cost reduction program
Deception
(80%)
The author uses the phrase 'as we've sadly come to expect' which is an editorializing statement. The article also mentions that Take-Two Interactive has announced plans to lay off around 500 employees and cancel some projects, but it does not provide any information about why these decisions were made or who made them. This is selective reporting as the author only reports details that support their position. However, the article does disclose sources (GamesIndustry.biz) and quotes from an SEC filing, so 'SourcesDisclosed' is set to true.
This cost slashing is designed to identify efficiencies across its business and enhance the company’s margin profile, while still investing for growth.
So, what does that mean? Well, around 580 people - of the 11,500 or so that were cited as making up Take-Two’s total headcount the last time that was reported by the company - are set to lose their jobs by the end of 2024.
The plans were revealed via an SEC filing
Fallacies
(95%)
The author uses the phrase 'as we've sadly come to expect' which is an appeal to audience emotion and a form of informal fallacy. The author also quotes Take-Two Interactive's statement that they are 'identifying efficiencies across its business and enhancing the company’s margin profile, while still investing for growth.' This statement contains vague language and could be interpreted in multiple ways, making it an example of ambiguity which is a form of informal fallacy. The author also quotes Take-Two Interactive's statement that they are 'rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs.' This statement implies that the layoffs are necessary for the company to be successful, but it does not provide any evidence to support this claim. This is an example of a hasty generalization which is a form of informal fallacy.
][The author] About 5% of the company’s workforce is reportedly in line to be let go by the end of this year.[/]
[Take-Two wrote that this cost slashing is designed] to identify efficiencies across its business and enhance the company’s margin profile, while still investing for growth.[
[Take-Two Interactive's statement that they are] rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs.[
/cdn.vox-cdn.com/uploads/chorus_asset/file/25404103/Take_Two_interactive.jpg)
