Zynga Slashes 18% of Staff to Cut Costs
The heady days of FarmVille are a distant memory for Zynga, and it’s still smarting from its ill-fated OMGPOP acquisition (as in, Draw Something, the game you played for a few weeks and then forgot). Today, Zynga released 520 workers, which is about 18 percent of its staff.
The workforce reductions aren’t entirely a surprise. Zynga has said publicly that cuts would be coming. In a press release, the company estimated it would save $70 to $80 million with the workforce reductions. It also announced the closure of “various office locations.” Those locations appear to be studios Dallas, Los Angeles and New York.
Layoffs at the beleaguered game company aren’t over yet (Zynga plans to wrap them up by August), but the company sees itself as being in a position of transition that will lead to growth. It is focusing on mobile gaming and has games in the works.
The workforce reductions aren’t entirely a surprise. Zynga has said publicly that cuts would be coming. In a press release, the company estimated it would save $70 to $80 million with the workforce reductions. It also announced the closure of “various office locations.” Those locations appear to be studios Dallas, Los Angeles and New York.
Layoffs at the beleaguered game company aren’t over yet (Zynga plans to wrap them up by August), but the company sees itself as being in a position of transition that will lead to growth. It is focusing on mobile gaming and has games in the works.
