Zynga lays off workers, closes Boston studio

The games developer may also close studios in the U.K. and Japan

Zynga is cutting about 5 percent of its workforce, and is "sunsetting" 13 of its older games, the company's founder and CEO Mark Pincus said Tuesday in a note to employees.

The games developer is also shutting down its studio in Boston, and may also close its studios in Japan and the U.K., Pincus said in the letter which was also posted online. It also plans to cut investment in "The Ville," a game it launched recently, and is reducing staff in its Austin studio. The company is also planning small reductions in partner teams.

The note comes a day ahead of Zynga's quarterly earnings conference call. The company said earlier this month that it expected to report losses for the third quarter ended Sept. 30, and lowered its outlook for the full year 2012.

"Earlier today we initiated a number of changes to streamline our operations, focus our resources on our most strategic opportunities, and invest in our future," Pincus said in the note. The overall cost reduction plan also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors.

The reductions, coupled with more stringent budget and resource allocation around new games and partner projects, are expected to improve the game developer's profitability and allow it to reinvest in games and its Zynga network on web and mobile, Pincus said.

On Tuesday, Facebook's CEO Mark Zuckerberg said that gaming on Facebook is not doing as well as he would like. Payments revenue from Zynga however dropped 20 percent during the third quarter compared to last year, while revenue from other games grew.

Zynga said earlier this month it expects to report revenue in the range of US$300 million to $305 million and bookings in the range of $250 million to $255 million for the third quarter. It also expects to report a net loss of between $90 million and $105 million.

In June, it announced the Zynga With Friends network, a unified experience that will connect all players on any platform, from Facebook to iOS and Android to its own gaming website Zynga.com, a move that was also seen as a bid to get away from its dependence on Facebook.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesgamesrestructuringgame softwarelayoffsZyngaGame platformsMobile games

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?