Zynga Closes Offices and Lays Off Hundreds
Zynga Inc, the social gaming giant best known for its ever popular Facebook game Farmville, has announced that it is planning radical layoffs in order to increase annual savings from $70 million to $80 million.
The company is closing its offices in Los Angeles, Dallas and New York with plans to let go around 520 employees, a staggering 18% of the company’s workforce.
The drastic measures are not surprising as the company’s financial outlook is rather gloomy – figures for the second quarter are showing a predicted net loss of around $39 million.
Some believe that the company will turn to the more lucrative real money gambling as it is currently the only steady source of income for the otherwise poorly performing firm.
Though Zynga shares might not seem like very attractive portfolio fillers right now the company is determined to ride out the current gloomy trend and come back to its former glory. They are staking their hopes on the expected changes in gambling legislation that will allow a wider coverage for their real money gaming venture. Experts believe that Zynga could recover similarly to Facebook following the nosedive right after its IPO.