Zynga letting go hundreds, possibly closing studios
Zynga has announced that it is letting go of 18 percent of its work force.
CEO Mark Pincus confirmed the layoffs after AllThingsD reported that about 520 employees were losing their jobs.
“None of us ever expected to face a day like today, especially when so much of our culture has been about growth,” wrote Pincus on the company blog. “But I think we all know this is necessary to move forward. 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.”
AllThingsD also reported that the Dallas, New York, Austin and Los Angeles offices would be closed, but Pincus did not confirm the closures.
Zynga later sent out a press release announcing that its financial outlook has been updated with at $28.5-$39 million loss for the second quarter, and that the trading of stock on Nasdaq has been halted after the news broke.
So far, 2013 has brought Zynga the departure of multiple executives, financial struggles and more layoffs and closures.