Zynga to Lay Off 18 Percent of Staff by August
June 3, 2013 8:06 PM
comment(s) - last by
This equates to about 520 employees
Zynga announced today that it's making major cuts to its workforce and even closing down offices around the U.S.
Zynga said it is laying off 18 percent of its workforce (or about 520 employees) by August 2013. It currently has about 2,900 employees.
The latest layoffs will affect all parts of the
social gaming company
. San Francisco-based Zynga will even have to close its offices in Dallas, Los Angeles and New York.
The layoffs are expected to save Zynga about $70 million to $80 million.
Zynga also announced that it expects a loss of $28.5 million to $39 million in the second quarter.
The problem with Zynga is that it's having a hard time taking on the mobile space. Its Web business has been declining faster than expected, and its mobile efforts aren't enough to fill the gap.
Zynga has also experienced financial trouble since its initial public offering (IPO). It filed its Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on July 1, 2011 and began trading December 16, 2011 at $10 per share. However, stock fell throughout 2012, hitting as low as $2.27 per share by October.
Another issue for Zynga is that its
casual, social games
don't seem to have long-term viability. It has had to axe 18 games in recent months -- including PetVille, FishVille, Mafia Wars 2 and Vampire Wars -- due to reduced popularity (and to make room for new games).
While Zynga still has a few successful games, like FarmVille, they haven't moved to the mobile space quickly enough, and players have increasingly lost interest over the years.
"None of us ever expected to face a day like today, especially when so much of our culture has been about growth," Zynga CEO Mark Pincus said in an e-mail message to employees Monday. "But I think we all know this is necessary to move forward.
"The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played."
This isn't Zynga's first set of layoffs. The company laid off 150 employees last fall as well.
This article is over a month old, voting and posting comments is disabled
RE: No surprise here
6/4/2013 9:28:05 AM
What I want is a way to block everyone on facebook from sending me the damn invites. Worse than spam.
I dont care nor do I ever want to play these. Not on a boat or with a goat. Never!
RE: No surprise here
6/4/2013 1:58:26 PM
Thumbs up for the Dr Seuss reference.
"I modded down, down, down, and the flames went higher." -- Sven Olsen
Facebook Games: A Question of Legitimacy
June 3, 2011, 6:42 AM
Games Could Make Facebook Biggest Bank by 2015
April 13, 2011, 10:03 PM
Facebook CEO Called President Barack Obama to Complain About NSA Spying
March 14, 2014, 1:40 PM
Quick Note: Google Drive 100GB, 1TB Plans See Major Price Cuts
March 13, 2014, 2:45 PM
Target Missed Early Warning Signs of Holiday Data Breach
March 13, 2014, 1:45 PM
Amazon Increases Prime Subscription to $99/year Starting March 19
March 13, 2014, 8:23 AM
Bitcoin King's American Accounts Get Frozen
March 13, 2014, 3:00 AM
Time Warner Cable CEO Says Merger with Comcast is a "Dream Combination", Will Increase Innovation
March 12, 2014, 2:37 PM
Most Popular Articles
Malaysian Airlines Flight 370 Made Wild Altitude Changes
March 14, 2014, 9:21 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Apple Authorized to Seek $40 Per Device Against Samsung
March 13, 2014, 4:31 PM
Man Who Shot Father for Texting During Movie Previews Was Also Texting
March 14, 2014, 2:25 PM
Latest Blog Posts
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information