Zynga Cuts Jobs, Games
Zynga (NAS: ZNGA) will be cutting 5% of its full-time work force, the company announced in a post on its blog yesterday. It will also be "sunsetting" 13 games and significantly reduce its investment in The Ville.
CEO Mark Pincus wrote the blog post. The job losses are "the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors," he wrote.
Pincus announced the closure of Zynga's Boston studio and spoke of proposed closures in Japan and the U.K. The changes come after a bleak quarterly report earlier this month that sent shares tumbling. Zynga reduced its guidance for the year, spooking investor confidence. Its shares have already lost more than 75% year-to-date.
Zynga has struggled through numerous quarterly losses recently as well as suffering through the aftershocks of its acquisition of fellow social gaming start-up OMGPop. The $180 million acquisition ultimately forced a $90 million writedown.
The article Zynga Cuts Jobs, Games originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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