CEO and president sold off stock before announcement
Costs between $160 million and $200 million
Layoffs, game cancellations, office closures
Take-Two Interactive announces layoffs of 5% global workforce
Take-Two Interactive, the parent company of Rockstar Games and 2k, announced plans to lay off approximately 5% of its global workforce as part of a cost reduction plan. The exact number of employees to be affected is around 600. The company expects to incur between $160 million and $200 million USD in costs from the layoffs, game cancellations, and office closures.
Take-Two Interactive's CEO and president both sold off a combined total of $13 million USD of their stock prior to the announcement. The company owns several subsidiaries including Rockstar Games, 2k, Private Division, Ghost Story Games, and Zynga.
The reasons for the layoffs include eight consecutive quarters of net losses and the acquisition of Gearbox for nearly half a billion dollars. Take-Two Interactive is expected to report these net losses when its quarterly earnings are next reported.
Rumors have circulated about several projects being canceled, but no official announcements have been made yet. The layoffs will likely be carried out throughout the year and will impact various departments within the company.
Take-Two Interactive is one of the largest public video game companies in the US and has faced criticism for its handling of employee severances in previous rounds of layoffs.
The exact games being canceled and departments affected have not been revealed.
Take-Two Interactive is laying off 5% of its workforce and canceling several projects.
Up to $140 million in charges are related to project cancellations.
Accuracy
Take-Two CEO Strauss Zelnick previously stated there were no plans for layoffs.
GTA 6, a highly anticipated sequel, is not one of the canceled projects but its development could be negatively impacted by the reduction in workforce.
Deception
(30%)
The article makes selective reporting by only mentioning the layoffs and project cancellations without providing context about the reasons behind them. The author also uses emotional manipulation by expressing their own feelings towards Take-Two's actions and implying negative consequences for GTA 6's development.
Of course, the elephant in the room is what will happen to GTA 6, and although it’s safe to say the highly anticipated sequel is not one of the canceled projects, it’s possible the reduction in workforce could negatively impact its development.
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Fallacies
(85%)
The authors make an appeal to the audience's emotions by expressing their disappointment and frustration towards Take-Two Interactive for announcing layoffs after previously stating 'no current plans' for them. This is a form of emotional fallacy known as an appeal to pity or pathos.
Of course, the elephant in the room is what will happen to GTA 6, and although it’s safe to say the highly anticipated sequel is not one of the canceled projects, it’s possible the reduction in workforce could negatively impact its development.
Meanwhile, Baldur’s Gate 3 boss has told layoff-happy publishers to stop trying to ‘double’ their money and instead ‘respect the people making the games.’
Take-Two is canceling several projects in development.
Take-Two completed a multi-billion dollar merger with Zynga but is struggling with mobile due to the acquisition being expensive and late.
Accuracy
]Take-Two is laying off around 5% of its workforce, or about 579 workers.[
Take-Two announced plans to cut headcount by approximately 5%
Take-Two will lay off approximately 600 employees.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an example of a dichotomous depiction and an appeal to authority. The dichotomous depiction is presented in the statement 'CEO Strauss Zelnick... said "no plans" for layoffs...', which sets up a false either/or scenario, implying that either there were no plans for layoffs or there was a secret plan that he wasn't disclosing. The appeal to authority is found in the quote from Zelnick about their cost reduction plan, where his position as CEO lends credibility to the statement but later contradicts the actual outcome. No direct quotes are used to report on these statements, which would be considered fallacies in themselves.
CEO Strauss Zelnick... said "no plans" for layoffs...
