Zynga cut 520 jobs worldwide
4 June 2013
Zynga, the online gaming company that shot to prominence with the Farmville game on social networking site Facebook, is slashing staff numbers worldwide as it struggles to make the shift to mobile gaming.
A total of 520 staff are being made redundant - about 18 per cent of its workforce - as part of a restructuring intended to save as much as $80m (£52.3m) in costs. It is also closing a number of satellite offices, including offices in New York, Dallas and Los Angeles.
It follows a strategic shift at the company from web games predominantly played on a PC or laptop via Facebook to mobile games played on tablet computers and smartphones. In engineering this shift, the company continued to push old products such as Farmville 2 on the new platforms when potential customers had already moved on, while new products proved less popular.
Because the gaming industry is hits driven, with a few big-sellers making up for the vast bulk of marginally profitable (if at all) flops, Zynga has struggled to build on the success of Farmville on Facebook. Its acquisition of Draw Something, meanwhile, which Zynga acquired for $180m (£117.6m), has not proved a success.
While Zynga ramped up staff following the success of Farmville, gaming rival Notch Development, the company behind Minecraft, gets by with about 30 - focusing on its core franchise rather than branching out into new products.
Zynga's share price has fallen from a price of $10 (£6.54) when it went public to about $3 (£1.96) now - although the company is still valued at about $2.3bn (£1.5bn).
Read more: http://www.computing.co.uk/ctg/news/2272597/zynga-cuts-staff-numbers-by-onefifth-as-it-struggles-with-mobile-gaming#ixzz2VpcmHEoJ
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