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Zynga Lays Off 364 Employees After First Quarter Losses Of $46 Million
Zynga continues to suffer as the company posted $46 million in net losses (GAAP) for the first quarter of its 2015 fiscal year. As part of a measure to cut costs, the company has laid off 18 percent of its workforce, amounting to 364 employees.
Despite the losses, Zynga outperformed its first quarter estimates as it moves to transition its focus more fully to mobile (and away from social). The company will continue to reduce costs in order to save approximately $100 million.
Zynga also recently experienced a leadership change as Don Mattrick (formerly of Microsoft's Xbox division) departed. Mark Pincus has stepped back in as CEO.
[Source: Zynga]
Our Take
Clearly Mattrick wasn’t able to make the turnaround he promised Zynga’s board and its employees. The resulting cuts are a result of Zynga’s slow move toward the greener pastures of mobile. Our thoughts are with those affected by today’s layoffs.
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