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Take-Two Announces Job Layoffs To Save $50 Million

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Take-Two Interactive is a parent company of Rockstar Games and 2K Games.

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Take-Two has announced a cost reduction program to save $50 million in annual spending.

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The CEO, Strauss Zelnick, has expressed disappointment in missing revenue forecasts.

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The cost savings will come from infrastructure, processes, corporate and publishing functions, and staff layoffs (excluding game development).

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The summer internship program will be eliminated and cuts will happen in travel and corporate management.

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The $50 million cost reduction is in addition to the $100 million cost synergies from acquiring video game developer Zynga.

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Strauss Zelnick wants to improve and make great products that consumers love.

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The cost reduction announcement was made hours before the announcement that Grand Theft Auto V and Red Dead Redemption 2 had sold 175 million and 50 million copies, respectively.

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The GTA series has sold a combined total of 395 million copies.

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Take-Two does not seem to be in financial trouble despite the cost reduction program.

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