Zynga Founder Announces Structural Changes, Cost-reductions
Zynga CEO Mark Pincus today announced that it has been struggling to retain players, and as a result, a plan to slash 18% of its work force.
"We are saying painful goodbyes to about 18% of our Zynga brothers and sisters. The impact of these layoffs will be felt across every group in the company," Mark Pincus, Zynga founder and CEO said in a memo to employees
He added that the move was necessary in order fot the company to move forward.
Since its initial public offering in December, 2011 following a period of runaway growth, Zynga has failed to replicate the success of its early hit titles on the Facebook platform. The company has not managed to successfully lead across mobile and multiplatform, as it had done as a leading social gaming service on the Web.
Pincus added that reducing the company's cost structure would offer Zybga's teams "the runway they need to take risks and develop these breakthrough new social experiences."
Zynga plans to offer "generous severance packages" to the laid off employees.
He added that the move was necessary in order fot the company to move forward.
Since its initial public offering in December, 2011 following a period of runaway growth, Zynga has failed to replicate the success of its early hit titles on the Facebook platform. The company has not managed to successfully lead across mobile and multiplatform, as it had done as a leading social gaming service on the Web.
Pincus added that reducing the company's cost structure would offer Zybga's teams "the runway they need to take risks and develop these breakthrough new social experiences."
Zynga plans to offer "generous severance packages" to the laid off employees.