Take-Two To Cut 15 Percent Of ‘Corporate’ Jobs

Take-Two Interactive (NSDQ: TTWO), which is under heavy pressure to turn-around its flagging performance, is cutting 15 percent of its corporate staff. (A spokesman wouldn’t say how many jobs were cut but said no positions were eliminated at Take-Two’s studios). The company described the job cuts as part of a “targeted restructuring of its corporate departments in order to align resources with its current goals.” Reports of an in-progress corporate restructuring first surfaced last month.
The job cuts come as investor Carl Icahn has increased his stake in the company to more than 12 percent; Icahn recently used his leverage to get three of his representatives on Take-Two’s board.
Take-Two announced the job cuts as it reported significant improvements in its quarterly results.
Net revenue increased 9 percent to $163.2 million, compared to $149.4 million a year ago. The company’s net loss shrunk to $33.8 million, or 43 cents a share, from $54.8 million, or 71 cents a share, during the first quarter of 2009. Both figures were above analyst expectations. Late last year, the company cut its guidance for the quarter.