Zynga to cut 18% of workforce
Social video game company Zynga Inc. on Monday said it will cut 18% of its staff, or about 520 employees.
The struggling maker of games such as “FarmVille†and “Words With Friends†is making the cuts as part of an effort to reduce costs by $70 million to $80 million.
The layoffs will be complete by August. The company will also close some of its offices.
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Zynga has struggled to repeat the success of its early games as many consumers switch to playing on mobile devices.
“None of us ever expected to face a day like today, especially when so much of our culture has been about growth,†said Zynga Chief Executive Mark Pincus in a letter to employees also posted on the company’s blog. “But I think we all know this is necessary to move forward.â€
The company also reduced its outlook for the second fiscal quarter. It now expects its net loss to be in the range of $39 million to $28.5 million.
Shares of the San Francisco company slid nearly 12% to $2.99 at the close of trading in New York.
The shares are trading about 70% down from the company’s 2010 initial public offering price of $10.
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