Zynga Inc. (the creator of Facebook game FarmVille ), is cutting its global workforce by 18 % , leading to elimination of about 520 employees. The reduction has been announced following a grim financial outlook and forecasts for the present financial year. The job cuts are a part of substantial cost reductions undertaken by Zynga which includes reduction of workforce and closure of offices at various locations. These moves are expected to result in $ 70 – 80 million in pre tax annualised cash expense savings. The workforce reduction will occur across all functions and is expected to be substantially complete by August 2013.
A statement by CEO Mark 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,”.