The embattled social-games maker aims to cut $80 million with another round of cuts by culling employees across the company and completely closing offices in New York, Los Angeles and Dallas June 3, 2013 12:26 PM PDT Social-gaming company Zynga is is hoping that further cost cuts will right its heeling ship, and said on Monday that it would cut 18 percent of its work force. Zynga posted the news on its blog. AllThingsD reported that it would shutter its offices in New York, Los Angeles, and Dallas. Related stories Run away from bulls on Zynga's latest 'With Friends' game Zynga's gameplan relies on FarmVille, says CEO Zynga launches Draw Something 2, kills four other games Zynga revenue drops 18 percent as player base shrinks Zynga CEO to earn $1 as other execs chase big bonuses The layoffs, which number about 520 positions, will be accompanied by other reductions to infrastructure costs. The San Francisco-based company has been struggling to revive the momentum that propelled it to the forefront of Web-based social games, after newer titles have failed to get the same traction as digital-livestock diversion FarmVille did out of the gate. Mobile is a key component of its turnaround plan, as is expense crimping, which Zynga implemented last year. That has helped it protect profit but hasn't stanched the flow of departing gamers. The company's stock has been struggling alongside its games since it went public at the end of 2011, when shares closed below its $10 IPO price and have yet to recover. They're currently worth about $3.41 each. After earlier cost retrenchment in the fall, the more substantial cuts now are not only because mobile growth has failed to ignite as hoped but also because Web-based deterioration is setting in quicker than expected, according the report.
The embattled social-games maker aims to cut $80 million with another round of cuts by culling employees across the company and completely closing offices in New York, Los Angeles and Dallas
Social-gaming company Zynga is is hoping that further cost cuts will right its heeling ship, and said on Monday that it would cut 18 percent of its work force.
Zynga posted the news on its blog. AllThingsD reported that it would shutter its offices in New York, Los Angeles, and Dallas.
Related stories
- Run away from bulls on Zynga's latest 'With Friends' game
- Zynga's gameplan relies on FarmVille, says CEO
- Zynga launches Draw Something 2, kills four other games
- Zynga revenue drops 18 percent as player base shrinks
- Zynga CEO to earn $1 as other execs chase big bonuses
The layoffs, which number about 520 positions, will be accompanied by other reductions to infrastructure costs.
The San Francisco-based company has been struggling to revive the momentum that propelled it to the forefront of Web-based social games, after newer titles have failed to get the same traction as digital-livestock diversion FarmVille did out of the gate. Mobile is a key component of its turnaround plan, as is expense crimping, which Zynga implemented last year. That has helped it protect profit but hasn't stanched the flow of departing gamers.
The company's stock has been struggling alongside its games since it went public at the end of 2011, when shares closed below its $10 IPO price and have yet to recover. They're currently worth about $3.41 each.
After earlier cost retrenchment in the fall, the more substantial cuts now are not only because mobile growth has failed to ignite as hoped but also because Web-based deterioration is setting in quicker than expected, according the report.
