Trouble looms for the social gaming company.
Zynga, the name behind popular social games such as Farmville and Mafia Wars, has shows a significant drop in their most recent quarterly earnings. The social gaming company has released a plethora of titles across social media and mobile platforms, Facebook, Android and Apple among them.
For their second quarter earnings, Zynga reported revenue of $213 million, which is a 31% drop from last year’s Q2 revenue of $332 million. In addition to the decline in revenue, Zynga has also suffered in their user base, with monthly unique and monthly active users dropping by 36% and 29% respectively.
In the face of these waning numbers, recently appointed Zynga CEO, Don Mattrick had this to say:
“The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity. To do that, we need to get back to basics and take a longer-term view on our products and business, develop more efficient processes and tighten up execution all across the company. We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I’m privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders.”
Mattricks optimism is promising, but it is not without cost. In an effort to cut down on in-house costs, Zynga has implemented a restructuring of the company that will reportedly result in the elimination of 520 jobs.