Zynga Closures and Layoffs
CEO of Zynga Mark Pincus has confirmed that his company will be letting go of 18% of its work force. Pincus wrote on the company's blog, "None of us ever expected to face a day like today, especially when so much of our culture has been about growth. 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."
This confirmation comes a mere 30 minutes after the story broke on AllThingsD. 18% may not sound a lot on its own but AllThingsD estimate that 520 of Zynga's total 2,900 employees will be laid off. The Zynga blog post talks about these layoffs though it does not mention the closures of their Los Angeles, New York, Dallas and Austin studios. The company, in addition to this, has stopped trading on the Nasdaq.
Could Zynga be going the way of EA's social gaming platforms? What do you think? Let us know in the comments below.