Take-Two Interactive Software (TTWO) to Cut 5% Staff, Announces Cost Reduction Plan

On April 16, 2024 the Board of Directors of Take-Two Interactive Software (NASDAQ: TTWO) approved a cost reduction program (the “Plan”) to identify efficiencies across its business and enhance the Company’s margin profile, while still investing for growth. 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.
The Company estimates that it will incur approximately $160 million to $200 million in total charges in connection with the Plan. The Company expects $40 million to $60 million of the total charges to result in future cash expenditures. The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and approximately $15 million to $25 million related to office space reductions.
The Plan is expected to be largely complete by December 31, 2024 and will reduce the Company’s workforce by approximately 5%.
The Company expects to achieve over $165 million of annual cost savings in connection with the Plan disclosed in Item 2.05 of this Current Report on Form 8-K, which includes reductions to its existing expense base and lowered projected expense growth for the coming years.

You May Also Be Interested In

• Micron launches $10B research lab focused on memory and AI
• Rocket Lab completes 93rd Electron launch for iQPS satellite
• TJX Cos. (TJX) Tops Q2 EPS by 3c, Beats on Revenue; Offers FY27 EPS Guidance