Take-Two Announces "Significant Cost Reduction" But Says It's Not Layoffs

Take-Two has recently announced that it is working on a "significant cost reduction" but has assured the public that it won't be laying off its employees for now.

The news comes from a Take-Two earnings report where the company had stated:

"We are currently working on a significant cost reduction program across our entire business to maximize our margins while still investing for growth. These measures are incremental to, and more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our outstanding release schedule."

In an IGN report, CEO Strauss Zelnick told them that there were no plans for layoffs. He continued by saying:

"We haven't put any meat on the bones of that yet," Zelnick explained. "I would just note that our biggest line item of expense is actually marketing. We do think we can optimize that. We also have third-party expenses, software, other vendors, supply services. And we always find opportunity there. The hardest thing to do is to lay off colleagues, and we have no current plans."

As pointed out by Games Industry.biz Take-Two had a similar plan last year but in the process of its "cost reduction plan," the company laid off an undisclosed amount of employees.

Layoffs have already affected a large part of the gaming industry this year. In just the past months companies such as 2K, Microsoft, Riot, and many more have laid off a significant number of their employees.

For more news on what was revealed during the Take-Two earnings report, check out our story on how GTA 5 has sold over 195 million units and how Ori dev's latest game, No Rest for the Wicked, has been delayed.