MCV understands that by the end of this month, the company will confirm the departure of most of its European managers, with sales and marketing functions of all PAL subsidiaries also expected to report directly to Take 2’s Geneva European HQ.
At the same time, as the new Board and shareholders look to stabilise the company in order to take advantage of the booming next-generation video games era, separate business units such as periperhals division Joytech could also be sold off.
As previously reported, the news comes after the restructuring of the Board, plus the ousting of CEO Paul Eibeler and other directors – which took place after shareholders earlier this year revealed plans to instigate sweeping changes to turn around the struggling publisher’s fortunes.
On Monday, Take 2 confirmed the rumours, as it announced quarter two results that showed a net loss of $52.2 million on retail revenues of $205.4m.
And speaking exclusively to MCV, Take 2’s international managing director James Ellingford explained that the cut-backs are necessary to take the company forward.
“Take 2 is restructuring several business units in the US and internationally to strengthen the company’s performance and competitiveness, whilst at the same time reducing its overall costs,” he said.
“In terms of our international business, this entails a significant restructuring that will consolidate and align our marketing, sales and operational functions according to business discipline rather than geographic area.
“These pro-active measures also will help offset the increased development costs for next-generation hardware platforms, as well as provide increased value for our shareholders.
“While it is regrettable that there will be a number of staff reductions, this was necessary so that we could realise our goals of creating continuing growth opportunities for the larger organisation,” added a pragmatic Ellingford.