Take-Two to lay off employees
Take-Two to lay off employees
'Grand Theft Auto' publisher reorganizing
By BEN FRITZ
"Grand Theft Auto" publisher Take-Two Entertainment will lay off a "meaningful" number of its 2,100 employees as part of a restructuring plan under new management, the company said Monday.
News came as it reported a net loss of $51.2 million on $205.4 million in the quarter ended April 30. While its loss was about even, revenue fell 22% from a year ago.
Decline derives in large part from strong sales for "Elder Scrolls IV: Oblivion" last year.
Shareholders elected a new board, which installed new management earlier this year following an accounting scandal and backdated stock options that resulted in former CEO Ryan Brant pleading guilty to falsification of business records.
Though it still has several successful franchises, most notably "GTA," Take-Two must make big steps to regain its financial footing, its new leaders say. Reorg calls for Take-Two to consolidate and realign many of its business functions, including international operations, West Coast ops and label and studio administration.
"While the decisions we are announcing today were difficult and will unfortunately require employee layoffs, we believe these necessary actions will improve the financial and operational performance of Take-Two, leading to greater value for our shareholders," said new CEO Ben Feder.
Company plans to release "Grand Theft Auto IV" in October.
Shares of Take-Two were up 1% in after-hours trading following the announcement.
(The Associated Press contributed to this report.)
'Grand Theft Auto' publisher reorganizing
By BEN FRITZ
"Grand Theft Auto" publisher Take-Two Entertainment will lay off a "meaningful" number of its 2,100 employees as part of a restructuring plan under new management, the company said Monday.
News came as it reported a net loss of $51.2 million on $205.4 million in the quarter ended April 30. While its loss was about even, revenue fell 22% from a year ago.
Decline derives in large part from strong sales for "Elder Scrolls IV: Oblivion" last year.
Shareholders elected a new board, which installed new management earlier this year following an accounting scandal and backdated stock options that resulted in former CEO Ryan Brant pleading guilty to falsification of business records.
Though it still has several successful franchises, most notably "GTA," Take-Two must make big steps to regain its financial footing, its new leaders say. Reorg calls for Take-Two to consolidate and realign many of its business functions, including international operations, West Coast ops and label and studio administration.
"While the decisions we are announcing today were difficult and will unfortunately require employee layoffs, we believe these necessary actions will improve the financial and operational performance of Take-Two, leading to greater value for our shareholders," said new CEO Ben Feder.
Company plans to release "Grand Theft Auto IV" in October.
Shares of Take-Two were up 1% in after-hours trading following the announcement.
(The Associated Press contributed to this report.)
Labels: layoffs, Take-Two Entertainment
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