Published , by Sam Chandler
Published , by Sam Chandler
The layoffs and project cancelations continue with Take-Two Interactive (TTWO) the latest company that will be downsizing. Despite hitting $1.37 billion in revenue and spending $460 million to acquire Gearbox Entertainment, the parent company of Rockstar Games will be laying off 5 percent of its employees.
On April 16, 2024, Take-Two Interactive released its Form 8-K that it had filed with the United States Security and Exchange Commission. This form outlines the plans the company has in regards to downsizing in order to achieve an annual cost saving of $165 million. In order to do this, Take-Two Interactive will be reducing its taskforce by 5 percent.
Terminating the employment of 5 percent of its workforce will cost Take-Two somewhere between $160 and $200 million dollars. The company notes that of this sum, between $25 and $35 million will be for employee severance and employee-related costs while $120 to $140 million is related to title cancelations. Finally, $15 to $25 million is the estimated cost of office space reductions.
Recently, Take-Two Interactive released its Q3 2024 earnings results, which saw it beat revenue and EPS expectations. The company posted $1.37 billion in revenue, beating out the Wall Street analysts’ estimates of $1.3 billion. The company also recently acquired Gearbox Entertainment Company for $460 million, which secures Take-Two the Borderlands franchise along with the publishing arm of Gearbox.
In addition to this, Take-Two Interactive also revealed Grant Theft Auto 6, the sequel to the critically acclaimed and commercial success, Grant Theft Auto 5. Despite beating revenue estimates, acquiring another large company, and the announcement of one of the most eagerly anticipated video games, it seems that it’s not quite enough to secure the jobs of 5 percent of its workforce.