Zynga lays off 18 percent of workforce, shifts focus to mobile

The impact will felt company-wide, said CEO Mark Pincus

Zynga CEO Mark Pincus launches new games at the company's new San Francisco office Tuesday

Zynga CEO Mark Pincus launches new games at the company's new San Francisco office Tuesday

Zynga, the social gaming services company, is laying off 18 percent of its employees in an effort to reduce its cost structure.

CEO Mark Pincus announced the layoffs Monday in a note to employees posted on the company's blog. Zynga, as of the end of last year, had more than 3,000 full-time employees, according to a filing with the U.S. Securities and Exchange Commission.

"Today is a hard day for Zynga and an emotional one for every employee of our company," Pincus said. "The impact of these layoffs will be felt across every group in the company."

"This is a necessary step to move forward," he added.

The layoffs are being framed by the San Francisco company as a way to capitalize on the growth of mobile devices and touchscreens that "are revolutionizing gaming," Pincus said.

"By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences," he said.

Historically, Zynga's network of users has been tightly linked to Facebook. Until recently the custom was for users to log in to Zynga through Facebook, but in March the company made changes to allow users to create their own accounts on the Zynga site. The move was designed to expand and solidify Zynga's own user base.

Some of Zynga's flagship titles include FarmVille, County Fair and Zynga Poker.

Zynga's games are also accessible through Google+ and the Android platforms, but 86 percent of the company's revenue in 2012 was derived from Facebook, the company said in its most recent annual report.

Zynga reported total revenue of roughly US$1.28 billion in 2012, up about 12 percent, though a net income loss of $209 million was recorded.

Zynga, which was founded in 2007, went public in 2011.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

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

Tags Internet-based applications and servicesMobile gamesconsumer electronicsGame platformsZyngagamesmobileinternetgame softwaremobile applications

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

Zach Miners

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

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

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?