Take-Two Interactive Software Inc (NASDAQ:TTWO), the maker of video games including Grand Theft Auto and Red Dead Redemption, has launched a plan to axe around 5% of its workforce and some development-stage games to reduce costs.
Adding to an existing program that began in March last year, directors of the loss-making computer games developer and publisher are now pushing through another scheme "to identify efficiencies across its business and enhance the company’s margin profile, while still investing for growth", a regulatory filing revealed.
This includes some "rationalizing" of its games pipeline, terminating several projects in development.
On top of that, the program will involve "streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs".
With redundancy payoffs, office space reductions and other charges, the board estimates circa $160 million to $200 million of charges will be incurred from the plan.
Latest results from the company revealed mounting losses, with a net deficit of $841.2 million for the nine months ending 31 December 2023, representing a more than 60% plunge year on year.
Although its games include FarmVille, Words With Friends, NBA 2K24, WWE 2K24 and Penny’s Big Breakaway, a lot hinges on the release of the sixth edition of GTA, which is slated for 2025.