Zynga Tries to Avert Potential "Mass Exodus" of Workers

Zynga Tries to Avert Potential "Mass Exodus" of Workers

image

Zynga is offering a one-shot financial incentive to keep almost 3,000 workers from walking out.

Zynga's ship is barely staying afloat in a sea of poor earnings as it gets assailed by lawsuits and allegations of shady financial deals. Recently, one of its key board members was stripped of his responsibilities and has subsequently chosen to leave the company. Employees at Zynga are certainly feeling the pressure now, and may also be contemplating looking for more stable employment elsewhere. In a bid to stop the company's workers from leaving overnight, Zynga has offered stock options to all its full-time staff.

The change came shortly after the lacklustre earnings report on July 25th that sent the company's share price tumbling to lows of $3 per share - a fall of approximately 70% compared to its initial opening price. Normally, Zynga would award company stock options and cash bonuses to its workers each quarter. In light of its dire situation, however, the decision was made to give stock options to approximately 3,000 workers that are still on Zynga's payroll.

Arvind Bhatia, an analyst for investment banking firm Sterne Agee & Leach Inc., has given the temporary reward scheme a nod of approval. "It's a proactive move to prevent mass exodus," he said. "It's positive for morale and I think it's the fair thing to do."

There are still doubts as to whether the options will have any substantial value for the workers. Several employees who joined before the company went public were paid in "restricted stock units", which prevented them from being cashed in until certain conditions are met. As a result, the shares were at the mercy of the market, unable to be touched as their value declined. The lock-up period on 150 million shares will expire on August 16, which will most likely trigger a mass sale as workers attempt to cash in their stock before everyone else.

Source: Bloomberg

Permalink

That's rich! So as an incentive to stay there they are going to offer them a plummeting stock? I guess they ran out of soup labels.

"How To Serve Man...
IS A COOKED BOOK!"

Do they print them out on squares of toilet paper?

One thing after another, eh Zynga? Just admit it...... You're screwed. Though I would much prefer to see something financially bad happen to the big boys who abandoned ship, leaving their employees to founder.

I really don't think that plummeting stock options are that great of an incentive to stay on the sinking ship that is Zynga.

Offering stock in a company that's on it's way to bankruptcy? You might need a better incentive...

Wow. Not only offering crippled stock as mentioned above, but offering stock to people whose problems were caused partly by watching their bosses unload stock BEFORE the drop while they were forbidden to.

That's like someone kicking you in the nuts and then offering you the shoes he used as an apology. And the shoes are old and smelly.

Abandon ship, screw the womenns and childrens, get your ass off ASAP!!!

Darkmantle:
Offering stock in a company that's on it's way to bankruptcy? You might need a better incentive...

On it's way to bankruptcy may be a bit of a stretch even at the moment. The stock plummeted, but that has no actual effect on operations unless they needed to raise money with a stock issue. I agree that bankruptcy or a buyout will likely be the inevitable conclusion to all of this, but at the moment they do have enough cash and cash equivalents to pay off all of their debt and then some so it's not totally dismal for them.

The fact that their losses are growing year over year should be a big concern for anyone working there though.

cynicalsaint1:
Do they print them out on squares of toilet paper?

More valuable as toilet paper.

I hope every single employee offered stock immediately left without another word.
Nothing about this seems like "incentive" to stay.
"Here, have our shitty stock that will be even more worthless by the time you can sell it. Please stay? We're lonely and everyone hates us. We just want some friends...Don't go..."

They might be more tempted if you offered them something of worth...

Zynga's problem is their business model compared to their size. 100 employees or less can work well with 30 million / year in revenue. 3000 employees with 300 million in revenue is a different monster entirely. I would be surprised if they go up for sale but based on the way their games work, I don't know if they could downsize.

I can imagine this happened:

A couple employees: *Leaving Zynga headquarters.*

Zynga CEO: WAIT! If you don't leave, we will give you STOCK OPTIONS! :D

All employees: *Start screaming and running to the exits*

cynicalsaint1:
Do they print them out on squares of toilet paper?

Don't let them degrade the value of the toilet paper! D:

*Gets popcorn*

Crash! Crash! Crash!

Good. The faster the market is rid of Zynga, the better.
Pity that those scumbags got as big as they did in the first place.

Words alone cannot express the glee I am feeling when reading all these articles about the downfall of Zynga, if only the top management get to pay for their crimes to innovation. Also I hope that all the employees who knew they were ripping off other games cant find jobs. HAHA. Karmic justice.

Very sad how many people are glad to see a company under hard times.

Actually enjoying and laughing at the poor situation of others? No matter what someone or a group has done or been accused of, to enjoy their suffering is nauseating.

Only monkeys throw feces ;P

Boudica:
Very sad how many people are glad to see a company under hard times.

Actually enjoying and laughing at the poor situation of others? No matter what someone or a group has done or been accused of, to enjoy their suffering is nauseating.

Only monkeys throw feces ;P

I thought the same as you, once. I felt that everybody had some redeeming qualities.

Then reality struck, and it turns out some people are just giant douchenozzles.

In this case, Zynga was the schoolyard bully to the indie developers who couldn't afford the legal fees to take Zynga to court over infringement. Then EA gets involved, the Chief officers sell their stock before the news gets out that someone has called their bluff, and are now basically bribing their employees to stay at a company which has shown no scruples as far as respect for the work of others.

EA is the notorious Gorgon of studios full of greedy shits, but at least they BOUGHT the IPs they ran into the ground. That Zynga managed to be worse is mind-boggling.

SciMal:

Boudica:
Very sad how many people are glad to see a company under hard times.

Actually enjoying and laughing at the poor situation of others? No matter what someone or a group has done or been accused of, to enjoy their suffering is nauseating.

Only monkeys throw feces ;P

I thought the same as you, once. I felt that everybody had some redeeming qualities.

Then reality struck, and it turns out some people are just giant douchenozzles.

In this case, Zynga was the schoolyard bully to the indie developers who couldn't afford the legal fees to take Zynga to court over infringement. Then EA gets involved, the Chief officers sell their stock before the news gets out that someone has called their bluff, and are now basically bribing their employees to stay at a company which has shown no scruples as far as respect for the work of others.

EA is the notorious Gorgon of studios full of greedy shits, but at least they BOUGHT the IPs they ran into the ground. That Zynga managed to be worse is mind-boggling.

The actions of your target don't make insults and sadism any less gross. Enjoying or otherwise being glad to see people fail is nothing short of cruel. Whoever they are and whatever they've done, you should never celebrate suffering. Apathy is the very least you could do here.

Boudica:
The actions of your target don't make insults and sadism any less gross.

We obviously subscribe to a slightly different moral basis. :) Ostensibly you are correct, but in a very abstract fashion. It's not a very practical way to construct a moral and ethical hierarchy on.

Enjoying or otherwise being glad to see people fail is nothing short of cruel. Whoever they are and whatever they've done, you should never celebrate suffering. Apathy is the very least you could do here.

Unsurprisingly we disagree. I think apathy would be much worse. I'd much rather support the vilification of absolutely deplorable business practices than dismiss a situation because bad things have happened.

SciMal:

Boudica:
The actions of your target don't make insults and sadism any less gross.

We obviously subscribe to a slightly different moral basis. :) Ostensibly you are correct, but in a very abstract fashion. It's not a very practical way to construct a moral and ethical hierarchy on.

Enjoying or otherwise being glad to see people fail is nothing short of cruel. Whoever they are and whatever they've done, you should never celebrate suffering. Apathy is the very least you could do here.

Unsurprisingly we disagree. I think apathy would be much worse. I'd much rather support the vilification of absolutely deplorable business practices than dismiss a situation because bad things have happened.

Supporting the intervention and prevention of criminal activity is not the same thing as enjoying that it needed to be done.

A murderer going to gaol isn't a good thing. It's sad that it needed to be done and it's perhaps the best course of action to protect the public and ensure the victim's family the attacker won't harm anyone else. What it isn't is good or joyful.

Boudica:
Supporting the intervention and prevention of criminal activity is not the same thing as enjoying that it needed to be done.

True. It's the fulfillment of a revenge fantasy. Zynga's CEOs will hopefully get their cummuppance and pay through the nose.

A murderer going to gaol isn't a good thing. It's sad that it needed to be done and it's perhaps the best course of action to protect the public and ensure the victim's family the attacker won't harm anyone else. What it isn't is good or joyful.

Aside from possibly colluding the events and the associated emotion, you're taking the abstract viewpoint. It's sad in a hyperbolic, theatrical sort of way where the cause for any pain or discomfort is to be lamented for mere existence.

It's not a practical philosophy to build an ethical structure, though. Well, at least to me it isn't, and I doubt any argument you can conceive of will convince me otherwise.

SciMal:

Boudica:
Supporting the intervention and prevention of criminal activity is not the same thing as enjoying that it needed to be done.

True. It's the fulfillment of a revenge fantasy. Zynga's CEOs will hopefully get their cummuppance and pay through the nose.

A murderer going to gaol isn't a good thing. It's sad that it needed to be done and it's perhaps the best course of action to protect the public and ensure the victim's family the attacker won't harm anyone else. What it isn't is good or joyful.

Aside from possibly colluding the events and the associated emotion, you're taking the abstract viewpoint. It's sad in a hyperbolic, theatrical sort of way where the cause for any pain or discomfort is to be lamented for mere existence.

It's not a practical philosophy to build an ethical structure, though. Well, at least to me it isn't, and I doubt any argument you can conceive of will convince me otherwise.

Revenge and the urge to make others suffer to promote yourself or inflate your own sense of happiness is crude, unnecessary, destructive and causes nothing but suffering.

Harming others or being glad they struggle won't help anyone or encourage peace. What it will do is keep humanity killing one another and encourage negative emotions. Hate, revenge and sadism are a weakness, not a trait to consider good or mundane.

If one person wishes to be unwholesome, returning in kind will only increase that number. Why become that which you condemn? What high ground do you have to stand on if you act as low as them? None.

Boudica:
Revenge and the urge to make others suffer to promote yourself or inflate your own sense of happiness is crude, unnecessary, destructive and causes nothing but suffering.

Well, no. It causes my happiness. Also, I'm merely an observer - the suffering was already occurring. I merely chose sides. My personal urges to see Zynga taken down could not cause them more suffering. I have never played their games, and probably never will. They are not losing a customer or gaining an enemy who has any semblance of power against them.

Harming others or being glad they struggle won't help anyone or encourage peace.

I see peace as unattainable, so this is fine with me.

What it will do is keep humanity killing one another and encourage negative emotions.

As it has been since the dawn of the species, so it will probably remain with us until we evolve beyond the need for resources. My view, anyways.

Hate, revenge and sadism are a weakness, not a trait to consider good or mundane.

If you believe so, I'm not going to dissuade you.

If one person wishes to be unwholesome, returning in kind will only increase that number. Why become that which you condemn?

To me there is only being human. Zynga is human. I am human. There are about 7 Billion other humans. This is getting mighty philosophical.

What high ground do you have to stand on if you act as low as them? None.

There aren't the same tiers to my beliefs. Kudos if yours work, but I haven't found what you're suggesting useful.

I think they would have found a subway sandwich to be a more beneficial severance package.

This is it. Zynga itself has landed a masterful self inflicted death stroke. August 16th, a bit after the markets open their stock will be worthless (0$).
I cant wait to see the news on this site days latter. Zynga declares they're broke.

The irony when all the employees leave to work for Indy devs :P

 

Reply to Thread

Log in or Register to Comment
Have an account? Login below:
With Facebook:Login With Facebook
or
Username:  
Password:  
  
Not registered? To sign up for an account with The Escapist:
Register With Facebook
Register With Facebook
or
Register for a free account here