Yesterday it became known that Zynga intends to reduce its staff by 18%. Thus, at least 520 people will be laid off.
First, this was reported by online sources, and then an appeal by its executive director Mark Pincus appeared on the official blog of the company, in which this information was confirmed.
The cuts will affect almost all divisions of the company and will save about $70-80 million per annum. The press service of Zynga did not specify which offices of the company will be closed, but there is information that the teams will stop working in New York (Draw Something, Draw Something 2), Dallas (Castleville) and Los Angeles (Empires & Allies).
Pincus also announced that the estimate of the expected loss for the current quarter increased from $28.5 million to $39 million. By the way, the exchange immediately reacted to the news about the layoffs at Zynga and the company’s stock price fell by 12% to $2.99 per share.
It is still difficult to say whether such “tough” measures will help the company to return to profitability. One thing is clear: Zynga has finally changed priorities and is increasingly moving from web products to mobile projects.