SHARE

zynganewBloomberg reports that social games giant Zynga Inc. announced that it will slash 520 jobs (approximately 18 percent of its staff), and shut down some offices as a result of lower than expected returns from its titles apart from the FarmVille series. The cuts will save roughly $70 million to $80 million in pretax expenses per year, the company said in a statement. The reductions will be finished by August and will lead to restructuring charges of $24 million to $26 million in the second quarter and $2 million to $5 million in the third quarter. CEO Mark Pincus is lowering costs as game players move from titles on Facebook Inc., Zynga’s core business, to apps played on smartphones.  Read more

LEAVE A REPLY