By Kevin McCauley
Zynga is cutting five percent of its 3,000-member work force and retiring 13 games as part of a survival plan of the San Francisco company that lost $108M on second-half revenues of $653M.
CEO Mark Pincus has projected a third-quarter deficit between $90M and $120M on revenues in the $300M range.
In his blog announcing “structural changes,” Pincus wrote of the program to “streamline our operations, focus our resources on our most strategic opportunities and invest in our future.”
His plan calls for the shutdown of Zynga’s Boston studio, possible closure of studios in Japan and the U.K. Cutbacks at the Austin studio are in the works.
“We don’t take these decisions lightly as we recognize the impact to our colleagues and friends who have been on this journey with us,” wrote Pincus. “This is 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.”
Pincus believes the revamp puts the company on “the right path to deliver on the promise of social gaming” and will “make Zynga into an Internet treasure.”
He will preside over an “all-hands meeting” next week.
|