The troubles continue for social gaming behemoth Zynga.
The company announced it will lay off 18% of its workforce, about 520 employees, and shutting down several offices worldwide. Zynga says the move, which will be completed by August, will save the company between $70-$80 million.
"None of us ever expected to face a day like today, especially when so much of our culture has been about growth," said Zynga CEO Mark Pincus in a message to employees on 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."
Layoffs are the latest blow to the struggling social games maker, which has seen revenues continue to plunge and players formerly attached to hits such as Farmville defect.
The company is focusing more on mobile as well as midcore, combative games in hopes of improving its fortunes.
"Our opportunity is to make mobile gaming truly social by offering people new, fun ways to meet, play and connect," said Pincus. "By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences."
Monday's layoffs follow a workforce reduction last October, when Zynga cut 5% of its staff and shut down several games.
Shares of Zynga are up 0.29% to $3.41.
Source: http://www.news.theusalinks.com/2013/06/03/zynga-announces-more-layoffs/
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