Take-Two Layoffs 2024: What to Know About the Latest TTWO Job Cuts


  • Take-Two Interactive (TTWO) is the latest video game maker to implement job cuts.
  • The industry-leading company is laying off 5% of its workforce.
  • This news doesn’t bode well for an already struggling gaming sector.
Take-Two layoffs - Take-Two Layoffs 2024: What to Know About the Latest TTWO Job Cuts

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Take-Two Interactive (NASDAQ:TTWO) is scaling back operations, starting with job cuts. The company behind the Grand Theft Auto franchise is battling a difficult economic landscape. As of this writing, TTWO stock is down almost 10% year-to-date (YTD).

The incoming changes at Take-Two include multiple canceled projects and a 5% workforce reduction. This means that 579 workers will be impacted by the Take-Two layoffs. Still, while shares are down today on the news, investors should focus on the bigger picture. This industry leader’s bad news may have implications for the entire gaming sector.

Does this mean investors should sell TTWO stock before things get worse? Let’s take a closer look.

What the Take-Two Layoffs Mean

Anyone who follows the gaming market likely isn’t surprised by the Take-Two layoffs. Other video game producers, including Unity Software (NYSE:U) and Riot Games, have opted for job cuts this year. Industry leader Microsoft (NASDAQ:MSFT) laid off 9% of its gaming division in January, promoting further speculation that the sector is facing problems. Even exposure to the metaverse and Web3 hasn’t helped these companies rise above strong macroeconomic headwinds.

For Take-Two, the decision to conduct layoffs seems to be due to a need for restructuring. Although CEO Strauss Zelnick said in February that the company had no plans for layoffs, things have clearly shifted. It’s also worth noting that several company leaders offloaded TTWO stock recently as part of their trading plans. As Gamespot reports:

“CEO Strauss Zelnick and president Karl Slatoff both sold a significant amount of Take-Two stock on April 12, ahead of the announcement of the finalized cost-cutting plan. According to documents filed with the SEC, Zelnick and Slatoff each sold off roughly $13 million worth of Take-Two stock at the end of last week. The sales were made as part of a Rule 10b5-1 trading plan, which allows for insiders at publicly traded companies to sell their stocks.”

While news of the Take-Two layoffs is sending TTWO stock down today, shares have already been trending downward for weeks. The market is clearly uncertain about this name’s future, even as management takes steps toward cost-saving measures.

Job cuts can sometimes signal a turnaround for a stock. But in this case, Take-Two may have to do more in order to snap the losing streak. For now, TTWO’s performance has likely spooked investors who were already worried about gaming stocks.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/take-two-layoffs-2024-what-to-know-about-the-latest-ttwo-job-cuts/.

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