Zynga has laid off 520 employees today, closed two offices in New York City and Los Angeles, and cut infrastructure costs. The company hopes that these drastic measures will help it save $80 million in staff costs. Zynga currently has about 2,900 workers and today's news is an 18 percent reduction in its staff numbers.
Zynga hopes to put a stronger focus on mobile, while focusing less on its web-based social games. The company has done this now, according to one source, because of its slow push into the mobile space and a recent rapid decline in numbers related to its web games on its own portal and on Facebook. The staff cuts and closures will be completed by August, the company has said.
"None of us ever expected to face a day like today, especially when so much of our culture has been about growth. But I think we all know this is necessary to move forward," wrote Pincus. "The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played."
We will have more on this story as it develops. We offer our condolences to all of our friends at Zynga who now find themselves unemployed. We wish you the best of luck in finding employment as soon as possible.