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Zynga Cuts Staff and Closes Offices
Wednesday October 24,2012 : ZYNGA CHOPS STAFF, CLOSES OFFICES
5 percent of workforce laid off, mainly in the United States
Beleaguered online social gaming giant Zynga's misfortunes continued this week with a further fall in share price and the news, confirmed by CEO Mark Pincus, that the company has cut 5 percent of its workforce of around 2,850 people and closed offices in the UK and Japan.
The Reuters news agency published a copy of a letter to employees from Pincus, in which the cuts were described as "the most painful part of the cost-reduction plan" and in which Pincus revealed that spending on data hosting, advertising and outside services from contractors was also being chopped.
The moves were designed to “streamline our operations, focus our resources on our most strategic opportunities, and invest in our future,” Pincus wrote in the brief.
100 layoffs were anticipated in the Austin, Texas office alone, Reuters reported.
13 unspecified game titles will also be shelved, although it appears that Zynga's intention to enter the real money online poker sector in the UK next year remains firm.
Zynga shares took a further hit on the news, declining to the $2.15 mark at one point before managing a weak rally to $2.20. With its Q3 financial reportage due today (Wednesday) speculation is lively on the likely reaction of the stock market to the latest developments.
In related news Mark Zuckerberg, chief of Zynga's main online venue partner, Facebook added to the pain during his Q3 analysts' call by revealing that Zynga contributed just 7 percent of Facebook’s latest quarterly revenues, down from 10 percent in Q2-2012.
Zuckerberg also revealed that average user spend on Zynga games via Facebook had slipped 20 percent despite a significant upward trend of around 40 percent in user spending on games from other developers.
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
Fair Play Bets and QuickFire in Deal -
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Cavaliers Aim to Take Down Wizards on 2/22/18 -
The Cleveland Cavaliers have looked like a different team since making their moves at the trade deadline. The Washington Wizards are up next for the Cavaliers, who will be at home after the All-Star break.
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