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Zynga lays off 520 employees

Zynga laid off about 520 employees across its worldwide operations today, cutting its workforce by 18 percent. The largest yet in a string of layoffs will reduce the company's annual expenses by $70 to $80 million as it scrambles to move from flagging browser-based social games to mobile projects.

"None of us ever expected to face a day like today, especially when so much of our culture has been about growth," Zynga CEO Mark Pincus wrote to employees in an internal memo, also published to Zynga's blog. "But I think we all know this is necessary to move forward. 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, which is where social games are going to be played."

Pincus' memo and Zynga's press release did not address specific studio closures, but sources who spoke to Polygon and AllThingsD confirmed that its New York, Los Angeles, and Dallas locations have all been shut down.

Zynga expects to lose $39 million to $28.5 million in the second quarter of 2013.

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5 comments

  • Redeater - June 4, 2013 12:29 a.m.

    "Expected to lose $39 million in the second quarter" That figure would still be astonishing even if it were annual when you take into account the fact that this is a company who makes "browser based social games" It's almost like people were getting bored with those repetitive games with no longevity.
  • GamesRadarCollanderCooper - June 3, 2013 4:59 p.m.

    Of course they do. Zynga was just another overhyped IPO like Facebook. What happened to all the charlatans like Michael Pachter who said mobile was the future of gaming
  • jduanej - June 3, 2013 5:31 p.m.

    I disagree that Zynga was "just another overhyped IPO". They dominated the market and had the traffic to show for it. I personally don't like how they do business, all they do is copy games IMHO. But in this day in age, a company either adapts or dies off. With regard to Facebook, it's really hard to judge a company so young with such a strong market share. I mean almost 1 billion monthly actives?? (at least as of July 2012)...they're at a pivotal point in their life, but the same goes for them, when you operate in a world that's evolving faster and faster, you either adapt/change or die.
  • tichtat - June 3, 2013 3:50 p.m.

    I should feel sad, that over 500 people just lost their jobs. But all I feel is a perverse glee at Zynga HURTING.
  • Errrrbo - June 3, 2013 1:42 p.m.

    People losing their jobs is bad news, and I hope they find new jobs... but honestly, I'd like to see Zynga disappear. I hate how they operate. It's such a soulless company that provides nobody with anything. Their games are designed only to get people addicted to them. That's my opinion on Zynga. Again, I hope those laid off can find other employment.

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