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Forums - Gaming Discussion - Zynga Cutting 364 Jobs in Major Restructuring

Jaywood2010 on 07 May 2015

San Francisco-based social game studio Zynga on Wednesday announced an extensive cost-reduction plan that the company says should help it save around $100 million in the short-term

As part of the process, the company revealed plans to lay off about 18 percent of its current global workforce.

A total of 364 people are losing their jobs. Zynga estimates that the layoffs will be completed by the end of its fiscal year and should result in about $45 million in annualized savings.

 

In addition, Zynga's restructuring process includes "additional cost reduction measures, including lowering costs and eliminating spend on outside and centralized services." This move, which should be completed by the third quarter of 2016, is expected to result in another $55 million in savings, the company said.

 

Zynga CEO Mark Pincus, who stepped into the role just last month after former Xbox boss Don Mattrick left, released a statement on the changes.

"For our people, we need to create an empowered, entrepreneurial culture that fosters more creativity and innovation," he said. "Over the years we've seen that tighter, more nimble teams can drive faster innovation and deliver more player value. As a result, today we announced a cost reduction program to focus, simplify and align us against our most promising opportunities."

"This was a hard but necessary decision and I believe this plan puts us in the best long term position for success."

The cost-saving plan was announced Wednesday as part of Zynga's latest earnings report for the quarter ended March 31. It was tough quarter, as the FarmVille company posted another net loss. On a GAAP basis, Zynga lost $46.5 million, while the non-GAAP loss was $7 million. Meanwhile, Zynga monthly unique payers, daily active users, monthly active users, and monthly unique users all fell year-over-year.

However, total Zynga revenue rose 9 percent to $183 million during the quarter.

http://www.gamespot.com/articles/zynga-cutting-364-jobs-in-major-restructuring/1100-6427151/




       

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LemonSlice on 07 May 2015

Holy crap I didn't know Don Mattrick was out.



megaman79 on 07 May 2015

Don Mattrick continuing his hat-trick of success.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

sales2099 on 07 May 2015

Guess Don Mattrick is now in a bar, getting blind drunk to forget what he had......and what could have been.



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Darwinianevolution on 07 May 2015

How many employees has Zynga? I thought it had 1000 people. If Mattrick has fired 1/3 of it's company, that's a terrible sign of alarm.



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ArchangelMadzz on 07 May 2015

Don left a few weeks ago guys..


This is probably backlash from him being CEO though.

edit: a month ago.



There's only 2 races: White and 'Political Agenda'
2 Genders: Male and 'Political Agenda'
2 Hairstyles for female characters: Long and 'Political Agenda'
2 Sexualities: Straight and 'Political Agenda'

megaman79 on 09 May 2015
sales2099 said:
Guess Don Mattrick is now in a bar, getting blind drunk to forget what he had......and what could have been.


Well atleast he has company. Oh the sorrow of a lonely drunk. 

 



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.