Hard-Hit Zynga Laying Off 18% of Workers

FarmVille maker struggles with rise in mobile gaming

By Rob Quinn,  Newser Staff

Posted Jun 4, 2013 1:25 AM CDT

(Newser) – Hard times have hit Zynga, maker of hit social games like Mafia Wars and FarmVille—as well as numerous other now-closed duds. The company, which was blindsided by the steep rise in mobile gaming and corresponding desktop decline, is laying off 18% of its workforce, around 520 people, All Things Digital reports. The company will also close its offices in New York, Los Angeles, and Dallas as part of its cost-cutting drive.

"None of us ever expected to face a day like today, especially when so much of our culture has been about growth," founder and CEO Mark Pincus wrote in a note to employees, promising generous severance packages and saying the cost-cutting is a necessary part of developing "breakthrough new social experiences." Zynga's share price dived 12% to $2.99 yesterday, a full 70% below its December 2011 IPO price, the Wall Street Journal reports.

Zynga CEO Mark Pincus walks off the stage after an announcement of new games at Zynga headquarters in San Francisco last year.   (AP Photo/Paul Sakuma, fIle)
« Prev« Prev | Next »Next » Slideshow

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. - Zynga CEO Mark Pincus

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.

Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!