Zynga lays off 18% of its workforce
By removing nearly a fifth of its workforce, the social gaming specialist intends to save up to 61 million euros per year and plans to focus its activities on mobile.
Confronted with many financial difficulties, Zynga announced yesterday that it plans to cut 520 positions, or 18% of its workforce. In total, the group will therefore grow from 2,700 employees to around 2,300.
This wave of layoffs comes as part of a global cost restructuring plan, Zynga now wishing to focus on its mobile activities.
Thanks to this reorganization, the social gaming specialist could save up to 61 million euros per year, estimates the Wall Street Journal.
In an official blog post, Mark Pincus clarified:
“Today is a tough day for Zynga and emotional for every employee at the company. It’s a painful farewell for about 18% of our “Zynga” siblings. The impact of these layoffs will affect all the entities of the group ”, before adding“ None of us expected to face a day like this but I think we all know that it is necessary to go from the front ”.
Mark Pincus also ensures “to offer generous severance pay reflecting the appreciation of the work of employees” and invites employees to get in touch with their respective managers.
As a result of the announcement, Zynga shares fell 12% to $ 2.9.
In the 4th quarter of its fiscal year 2012, Zynga recorded a turnover of $ 311 million, against $ 212 million expected by analysts.
The social gaming specialist had also recorded a net loss of $ 48.6 million over the same period. This was good news, however, since the group had suffered a net loss of $ 435 million a year earlier.
In Q4 2012, the company claimed 56 million active users per day.