Take-Two also lays off employees
After suffering a severe sales drop, Take Two Interactive has decided to layoff a number of marketing and sales personnel. The move is just a part of the restructuring plan aimed to recover the losses incurred in the second fiscal quarter. Take Two’s CEO Ben Feder explains the situation:
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.
For the record, Take Two’s second quarter fiscal financial results ended on April 30 this year, with loss of revenue amounting to US$ 60 million from fiscal second quarter of 2006. The company blamed the loss on a lack of a strong new title, like The Elder Scrolls IV: Oblivion. It has suffered a net loss of US$ 51.2 million for that quarter, compared to last year’s US$ 50.4 million.
Not to be deterred by the losses, Chairman Strauss Zelnick has said that they have now committed to make Take Two the “most creative, the most innovative and the most efficient company” in the games industry. They have also pledged to their shareholders and employees a thorough action plan within the first 100 days.
To date, they only have one month remaining in the said 100-day plan. Take Two is confident that it will be able to report the full results in the first few weeks of July.
Among the other steps that Take Two Interactive has taken in restructuring the company is putting the European management division on the big chopping block. The company justified the move by considering the senior management across all territories as needless and redundant.
One of the highlights of the move is the ousting of Paul Eibeler and other head officers.
After suffering a severe sales drop, Take Two Interactive has decided to layoff a number of marketing and sales personnel. The move is just a part of the restructuring plan aimed to recover the losses incurred in the second fiscal quarter. Take Two’s CEO Ben Feder explains the situation:
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.
For the record, Take Two’s second quarter fiscal financial results ended on April 30 this year, with loss of revenue amounting to US$ 60 million from fiscal second quarter of 2006. The company blamed the loss on a lack of a strong new title, like The Elder Scrolls IV: Oblivion. It has suffered a net loss of US$ 51.2 million for that quarter, compared to last year’s US$ 50.4 million.
Not to be deterred by the losses, Chairman Strauss Zelnick has said that they have now committed to make Take Two the “most creative, the most innovative and the most efficient company” in the games industry. They have also pledged to their shareholders and employees a thorough action plan within the first 100 days.
To date, they only have one month remaining in the said 100-day plan. Take Two is confident that it will be able to report the full results in the first few weeks of July.
Among the other steps that Take Two Interactive has taken in restructuring the company is putting the European management division on the big chopping block. The company justified the move by considering the senior management across all territories as needless and redundant.
One of the highlights of the move is the ousting of Paul Eibeler and other head officers.
About The Author
