Take-Two Interactive Software Inc.
04/16/2024 | Press release | Distributed by Public on 04/16/2024 15:04
Regulation FD Disclosure - Form 8-K
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Item 2.05
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Costs Associated with Exit or Disposal Activities |
On April 16, 2024 the Board of Directors of Take-Two Interactive Software, Inc. (the "Company") approved a cost reduction program (the "Plan") 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 $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 approximately $15 million to $25 million related to office space reductions.
The Plan is expected to be largely complete by December 31, 2024 and will reduce the Company's workforce by approximately 5%.