Report: Take-Two To Announce Major European Layoffs

Following earlier confirmation of a reorganized focus for major publisher Take-Two, a new report suggests major European job cuts for the company, including the ousting of “most” of the region's management staff. According to a new report by British trade paper MCV, confirmation of the layoffs is expected by the end of June, adding that Take-Two's sales and marketing efforts within PAL regions are also expected to “report directly” to the firm's headquarters in Geneva. The reorganization, according to Take-Two’s international managing director James Ellingford, is part of a larger effort to “strengthen the company’s performance and competitiveness, whilst at the same time reducing its overall cost.” Specifically, the executive described the cuts as “pro-active measures” designed to “help offset the increased development costs for next-generation hardware platforms, as well as provide increased value for our shareholders.” The report follows Take-Two's second quarter earning announcement, at which time the company reported a loss of $51.2 million on $205 million in revenue, a significant decline from the company's previous year. The publisher also announced at that time a new comprehensive restructuring plan, indicating that it plans to consolidate and realign a number of its departments and studios from marketing and sales to its 2K and 2K Sports labels. Added Ellingford to MCV, “While it is regrettable that there will be a number of staff reductions, this was necessary so that we could realise our goals of creating continuing growth opportunities for the larger organisation.”