- Preeti Upadhyaya
- Technology Reporter- Silicon Valley Business Journal
- Email | Twitter
A Zynga UI designer's tweet shows that the social gaming company will be closing its LA office, letting go of about 55 employees. AllThingsD reports the New York and Dallas offices will also close. In total, the cuts represent about 520 employees, according to a company press release.
"The workforce reduction will occur across all functions and is expected to be substantially complete by August 2013," Zynga said in the release.
The company also updated its outlook for the second quarter saying that net loss is projected to be between $28.5 million and $39 million, and reaffirmed the outlook for revenue and earnings per share.
CEO Mark Pincus confirmed the layoffs on the company blog, saying "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."
This isn't the first big cut for Zynga. In February, the company shuttered four offices and laid off 30 people. And last fall, Zynga CEO Mark Pincus said the company would be laying off 5 percent of its work force and shut down its Boston office.
Related: Is Facebook gaming dead?
Related: 6 reasons Zynga and social gaming are dying
According to VentureBeat, the company's roster is now at roughly 2,902 employees.
AllThingsD reports that sources say the reason for the cuts now following the ones last fall is "because the decline of its Web business has been more drastic than anticipated, while the rise of its mobile business slower than needed."
No comments:
Post a Comment