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Zynga Shuts Offices
Monday June 3,2013 : ZYNGA CUTS COSTS OF WORKFORCE, SHUTS OFFICES
Adjusted outlook impacted by cost reduction strategy
Social gaming giant Zynga cut its workforce by almost 20 percent today, effectively laying off 520 employees.
In a memo to employees chief executive officer Marcus Pincus said: “None of us ever expected to face a day like today, especially when so much of our culture has been about growth… 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.”
The shuttering of its New York and Los Angeles Offices support the company's cost cutting strategy resulting in an annual saving of around $70 to 80 million.
The company said in an updated outlook for the second quarter of 2013 that it projected its net loss to be in the range of $39 million and bookings to be in the lower half of the outlook range.
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