The lights are on
In an effort to streamline operations, Zynga CEO Mark Pincus says the company is closing 13 games and reducing investment in The Ville. Zynga is also closing its Boston studio and proposing closures of the Zynga Japan and UK studios. In total, Pincus says 5 percent of the company's workforce is affected.
Below is Mark's statement in full provided by Zynga:
INTERNAL NOTE FROM ZYNGA CEO AND FOUNDER, MARK PINCUS
Team,Earlier today we initiated a number of changes to streamline our operations, focus our resources on our most strategic opportunities, and invest in our future. We waited to share this news with all of you until we had first spoken with the groups impacted.
As part of these changes, we've had to make some tough decisions around products, teams and people. I want to fill you in on what's happened and address any concerns you may have.
Here are the most important details.
We are sunsetting 13 older games and we're also significantly reducing our investment in The Ville.
We are closing the Zynga Boston studio and proposing closures of the Zynga Japan and UK studios. Additionally, we are reducing staffing levels in our Austin studio. All of these represent terrific entrepreneurial teams, which make this decision so difficult.
In addition to these studios, we are also making a small number of partner team reductions.In all, we will unfortunately be parting ways with approximately 5% of our full time workforce. We don't take these decisions lightly as we recognize the impact to our colleagues and friends who have been on this journey with us. We appreciate their amazing contributions and will miss them.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.These reductions, along with our ongoing efforts to implement more stringent budget and resource allocation around new games and partner projects, will improve our profitability and allow us to reinvest in great games and our Zynga network on web and mobile.Zynga made social gaming and play a worldwide phenomenon, and we remain the industry leader. Our success has come from our dedication to a simple and powerful proposition – that play is not just something people do to pass time, it's a core need for every person and culture.We will all be discussing these difficult changes more with our teams and as a company. Tomorrow, Dave and I will be hosting a post-earnings webcast (details to follow) and next week we will be discussing our broader vision and strategy during our quarterly all-hands meeting. I'm confident this puts us on the right path to deliver on the promise of social gaming and make Zynga into an internet treasure.If you have any immediate questions, I hope you will talk directly with your manager, Colleen, or me.I look forward to talking with you tomorrow.Mark
I'm not a big fan of their games, but it always sucks seeing people getting laid off. Good luck people.
Why did they have a studio in Japan? Well, maybe I'll get fewer people bugging me to play one of their games now.
Bazinga! (Sheldon Cooper)
Welcome to the world of investment bubbles.
I saw this coming, the social gaming bubble has burst, and it's all downhill from here. It wouldn't surprise me if Zynga shuts down altogether, or is bought out by a large publisher. Still, it's sad to see people lose their jobs, especially with the current economic situation :(
Wow that's scary...
Yeah I'm sure those guys are really crying for their staff. The same guys notorious for questionable business practices and trying to get away with buckets of cash without regard to the well-being of their business.
CEOs caring, yeah. Actions speak louder than the cheap print your secretary banged out on a keyboard.
Well they had good run.
Weren't they the hottest thing like 3 months ago? Hope the employees land on they feet. F*** the higher ups who spent all that bank when the stock was Supernova hot....
Feh. Zynga's "Games" are just ripoffs of actual, better games, stuffed with Facebook's "Let us spam your friends so you can play for 5 more minutes" annoyances. I'm 100% confident none of these 13 canned games will be missed.
Why do we even cover Zynga anyway? Unless the story is, "Zynga is going out of business", I don't want to see it on GameInformer.
I hope the unemployed get jobs even if they get into to social games again. I am not a fan of games made by Zynga so I'm not broken up about the games being shut down.
Oh so now they're ripping off Lightbox. Great.
Correction: 13 Copies