Take-Two announces cost reduction plan, to reduce workfoce by 5%

On April 16, the Board of Directors of Take-Two Interactive Software, approved a cost reduction program 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 $160M to $200M in total charges in connection with the Plan. The company expects $40M to $60M of the total charges to result in future cash expenditures. The total charge consists of approximately $120M to $140M related to title cancellations, approximately $25 M to $35M associated with employee severance and employee-related costs, and approximately $15M to $25M related to office space reductions. The Plan is expected to be largely complete by December 31 and will reduce the company’s workforce by approximately 5%. The company expects to achieve over $165M of annual cost savings in connection with the Plan disclosed in Item 2.05 of this Current Report on Form 8-K.