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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.
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Gambling News :
Wanajump Launches -
#Wanajump Spanish online and land gambling operator Grupo R. Franco appears to be emulating the William Hill group, announcing this week that it is to begin a start-up accelerator program for innovative entrepreneurs, which it has titled Wanajump.
Coral Launches player proposition betting product -
Digital Sports Tech, a business-to-business software provider of sports betting solutions, has signed a deal with UK online and land sports betting operator Coral to provide an innovative player proposition betting product.
Oshi online casino now accepts fiat currencies -
The Oshi online casino, which started just a year ago as a Bitcoin-denominated operation, has described its expanded activity in a statement this week, noting that in addition to Bitcoin it now accepts fiat currencies and has added new game providers to its roster of suppliers.
New Standards for UK Online Gambling -
Online gambling service and technology providers, along with operators and testing agencies will be studying the new gambling software and technical standards proposal published by the UK Gambling Commission following a public consultation.
Pennsylvania Gambling Bill 1887 returned with additions -
The interaction between the Pennsylvanian House and the state Senate has become increasingly like watching a game of ping pong as the two political establishments wrestle with online gambling legalization and court-ordered tax fixes in the dying days of the current political season.
Mybet Earnings Struggle -
The statement this week reveals that Mybet continued to be hampered by negative trends from historic quarters, making its original performance estimate "unrealistic".
Tom Horn Awarded Malta Gaming License -
Online gambling software provider Tom Horn Gaming has been awarded a Malta Gaming Authority license that permits the company to host and manage Malta-based gaming operators.
Calvin Ayre invests in new Antigua Business Center -
Ayre joined with government officials this week in a ground-breaking ceremony for a five-story centre on Antigua which will be home for the venture. The "green" building will be solar powered and provide employee-friendly services like catering, a gym and child care.
Attack of the Zombies Slot -
Online gambling games developer Genesis Gaming has unveiled its latest game, with a theme based on a horror story of the undead, exploiting the current trend....and just in time for Halloween.
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