Take-Two Interactive Software, Inc. (NASDAQ:TTWO) said it will eliminate headcount and reduce future hiring needs as a part of its cost reduction program.
The Grand Theft Auto maker said it is trying to identify efficiencies across its business and enhance the margin profile while still investing for growth, according to an exchange filing.
The company estimates that it will incur approximately $160 million to $200 million in total charges in connection with the plan.
The company expects $40 million to $60 million of the total charges to result in future cash expenditures. The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and roughly $15 million to $25 million related to office space reductions.
The plan is expected to be complete by December 31 and reduce the company's workforce by approximately 5%.
Take-Two had 11,580 full-time employees at the conclusion of its most recent fiscal year, Bloomberg reported.
Anticipated for release in 2025, Grand Theft Auto VI is poised to become one of the highest-grossing media products ever, the report read.
According to Benzinga Pro, TTWO stock has gained over 16% in the past year. Investors can gain exposure to the stock via Roundhill Video Games ETF (NASDAQ:NERD) and VanEck Video Gaming And ESports ETF (NASDAQ:ESPO).
Price Action: TTWO shares are trading higher by 0.39% to $146.00 premarket on the last check Wednesday.