Zynga internal memo confirms layoffs, closures

October 23, 2012
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The days of pulling out your phone and indulging in a moment of Words with Friends or Draw Something might be coming to an end. Earlier today, Zynga workers were greeted with a notice that they had two hours to pack up and get out. Now an internal email by the company's CEO Mark Pincus confirms that the company plans to cut 5% of its workforce and close the Boston studio.

In addition to closing down the Boston studio, Zynga is also reducing the workforce at its Austin branch, and is considering closing its offices in Japan and the UK. A "small number" of partner teams are also on the chopping block. Thirteen games are to be retired, and The Ville is slated for a significant reduction, according to the email.

Thus far, which 13 games are going to be retired is unknown, although the email did mention that they're older titles. Zynga is currently being sued by EA over The Ville, which claims that the game is a rip off of The Sims Social. Earlier this year, Zynga's revenue had dropped enough to garner a $22.8 million loss.

All in all, things are looking pretty dismal for Zynga. The company's financial woes combined with its continual struggle to monetize mobile gaming seem to have finally caught up with it, with a lot of employees ending up blindsided. CEO Pincus stated in the email, "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." The company's financial report will be released tomorrow.

[via Joystiq]


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