Zynga, the social gaming giant, reduced its workforce by nearly twenty per cent today. It effectively laid off some 520 employees.
Marcus Pincus, the chief executive officer, sent a memo to employees, saying: ?Not a single person from our company anticipated to face such a difficult day, especially when such a great part of our culture has been concerned with growth. The scale aided us so well in creating and delivering the leading service for social gaming on the Internet but is now making it difficult to lead across multiplatform and mobile, which is where social gaming will take place.?
The shuttering of its Los Angeles and New York offices comes as a support to the cost cutting strategy of the company. It resulted in a yearly saving of some $70 to $80 million.
In an updated review of the 2013?s second quarter the company said that it expected its net loss to stand in the range of $39 million while the bookings to stand in the lower half of the report?s range.