Zynga Cuts 520 Jobs, Closes Offices in Four Cities
Cost cutting measures and a re-focus on mobile are motivating the social media developer.
According to AllThingsD, Zynga is cutting 520 jobs across all areas of its business in order to focus on mobile and reduce costs. The cuts will total roughly 18 percent of its and has resulted in the closure of offices in New York, Los Angeles, Austin and Dallas. The “slashing of other major infrastructure costs” is also apparently in the process, with the complete reduction in workforce to be finished by August.
In an internal memo, Zynga CEO Mark Pincus stated that, “None of us ever expected to face a day like today, especially when so much of our culture has been about growth. 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. 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.”
Zynga has been in severe trouble since last year with plummeting stock shares, the closure of more than 12 key titles and the departure of several senior executives.