Zynga Lays Off 520, Closes Three Offices

Zynga Lays Off 520, Closes Three Offices

zynga dog

Zynga is cutting 18 percent of its workforce and closing its offices in New York, Dallas and Los Angeles.

Zynga's troubles over the past couple of years have been well-documented but even so, these cuts are big. In an effort to reduce costs and make a harder turn toward mobile gaming, the publisher will lay off roughly 520 employees, representing 18 percent of its staff, and close down its offices in New York, Dallas and Los Angeles. The cuts will affect all parts of the company and save an estimated $80 million, a figure that's expected to be even larger once other infrastructure costs are factored in.

"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," Zynga CEO Mark Pincus said in a message posted on the Zynga blog.

"These moves, while hard to face today, represent a proactive commitment to our mission of connecting the world through games. Mobile and touch screens are revolutionizing gaming. Our opportunity is to make mobile gaming truly social by offering people new, fun ways to meet, play and connect. By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences," he continued. "Because we're making these moves proactively and from a position of financial strength, we can take care of laid off employees. We're offering generous severance packages that reflect our appreciation for all of their work and we hope this will provide a foundation as they pursue their next professional steps."

Zynga suffered through significant layoffs last year, cutting more than 100 people from its Austin studio in October, and in February of this year consolidated its Texas and New York operations and shut down its Baltimore office. But sources say these even more drastic cuts are necessary now because its web business has declined faster than expected, while its mobile business isn't taking off as quickly as needed.

Source: All Things D

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Oh hey there's this dead thing here, anyone got a stick to poke it with?

kajinking:
Oh hey there's this dead thing here, anyone got a stick to poke it with?

Is that a new game idea?
I'M TAKING IT!
IT'S MINE!
YOU CAN'T HAVE IT!
I'LL SUE YOU!

At first: Yay! Does this mean Zynga's dying?

Then: Wait, 520 people just lost their jobs. That's not cool.

AND THEN: WTF do 520 people do at Zynga? And that's just 18% of their workforce?

520 people were laid off? Good lord! That's absolutely dreadful!

"Because we're making these moves proactively and from a position of financial strength, we can take care of laid off employees. We're offering generous severance packages that reflect our appreciation for all of their work and we hope this will provide a foundation as they pursue their next professional steps."

At least that's something, although that's a huge amount of IT people entering the job market. I hope they all get better jobs somewhere else.

SmugFrog:
At first: Yay! Does this mean Zynga's dying?

Then: Wait, 520 people just lost their jobs. That's not cool.

AND THEN: WTF do 520 people do at Zynga? And that's just 18% of their workforce?

My thoughts exactly. Wouldn't that mean Zynga employs like 3,000+ people?

Also, good riddens to them. They make their money exploiting people who don't know better

I've never appreciated Zynga's business model or its intellectual dishonesty, so I'd be quite happy if they either evolved past that or simply ceased to exist as an entity.

One thing I've noticed on here a lot is people talking about layoffs from such companies, no matter how demonstrably bad their busness practices, as a negative thing (not just in this thread, but in many others). It isn't that I lack empathy for the person who has lost their job, but I still don't see it as a terrible thing. If you work for a crappy company that is dishonest and has a backwards and unsustainable business model, I have very little sympathy for you.

I for one will cheer the demise of such disreputable industry goons, regardless if it means they can no longer employ people. I will also simultaneously hope those employees find new and profitable work with a company who's business model isn't based around being one of the biggest douches in the room. In short, I don't think the layoffs are dreadful at all, as they are completely necessary for Zynga to either die or change and I cannot feel an overwhelming sympathy for people who chose to be associated with a company that was well known for being dishonest. Again, this is not because I have no empathy for their loss of employment, but because they chose their employer and are themselves a party to the company's actions.

PoolCleaningRobot:
Also, good riddens to them. They make their money exploiting people who don't know better

How many of those 520 people do you suppose are actually the ones that created and control Zynga's business practices? I think they're just people looking for a job. It's the people that run Zynga that need to be booted out. Even their logo offends me.

CAPTCHA: out of sorts
God bless this thing.

SmugFrog:

PoolCleaningRobot:
Also, good riddens to them. They make their money exploiting people who don't know better

How many of those 520 people do you suppose are actually the ones that created and control Zynga's business practices? I think they're just people looking for a job. It's the people that run Zynga that need to be booted out. Even their logo offends me.

CAPTCHA: out of sorts
God bless this thing.

Yeah... That's why I said you had my thoughts exactly. First thought: fuck Zynga, second thought: sucks for 520 people, at least they get a severance package, third thought: why does Zynga have so many employees?

captch: I am fine
that's right, there's nothing wrong with my train of thought

we're making these moves proactively and from a position of financial strength

Doesn't seem like a company in a position of financial strength would need to fire almost a fifth of its employees, let alone however many it's lost in the last year or so. Maybe I just don't speak Crapanese.

I wonder if they will make it past the end of the year. Who knows, maybe they will successfully rip off yet another game and make money again?

This is why Zynga keeps losing offices. What are you doing with over 2500 people in your employ if all you ever do is release alterations of Farmville and overly complicated PR moves of such titles? Temple Run took a team of two, how many people does Zynga possibly need?

New, fun ways to meet

Translation - "Our renditions of other people's ideas that allow you to annoy the shit out of people you've already met through notifications."

SmugFrog:

Then: Wait, 520 people just lost their jobs. That's not cool.

Eh, they were working at Zynga. They knew the company does what it does. Sure, some people will take whatever job they can get, but that doesn't mean we have to get all choked up if those 'screw everyone else' jobs go away, any more than you would for 520 telemarketers, 520 patent attorneys, or 520 door to door kick you in the crotch people.

so the rockslide is still falling. i guess those people will ahve to find decent work now. i never though that closign a studio wil lbe good news but this is zynga, so it is.

oldtaku:
520 door to door kick you in the crotch people.

Where do I apply for THAT job?

 

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