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USANews版 - Game over for 520 Zynga workers
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发帖数: 21627
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SAN FRANCISCO -- Beleaguered game maker Zynga zapped 520 jobs today in a
deep cost-cutting move that increases questions about its future.
The company, based here, said it will lay off 18% of its workforce worldwide
and shutter offices. Zynga declined to say where but sources, who asked not
to be identified, said the locations are in Los Angeles, Dallas and New
York. Zynga says the move, which should be completed by August, will save it
$70 million to $80 million.
FIRST TAKE: Lull in games left Zynga little choice
Zynga on Monday said it anticipates a second-quarter loss of $28.5 million
to $39 million.
The news sent Zynga shares tumbling 12%, to $2.99 -- far below its IPO price
of $10 per share.
"None of us ever expected to face a day like today, especially when so much
of our culture has been about growth," Zynga CEO Mark Pincus said in an e-
mail message to employees on Monday. "But I think we all know this is
necessary to move forward.
"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," Pincus said.
The largest layoff in the nearly 6-year history of Zynga is its latest blow.
The company has endured player defections, increased competition amid
slumping revenue, and the elimination of 18 titles in the past six months.
Last fall, Zynga announced about 150 job cuts.
That has caused Zynga to focus more on mobile and so-called midcore games in
hopes of changing its course. Zynga defines midcore as games that "blend
the depth of hard-core games, traditionally played on a PC or console, with
the approachability and accessibility of casual games that are mobile, free-
to-play and social," says Steve Parkis, senior vice president of games,
midcore, at Zynga.
"The market for mobile gaming is morphing in super-quick cycles, and
companies in the space can get whipsawed as a result of it," says P.J.
McNealy, CEO of Digital World Research. "Zynga's layoff news, again, is
clear evidence. It's also clear that this won't be the last round of layoffs
."
While Zynga struggles to maintain users, the number of people in the U.S.
who play games online, on their phones or through social networks continues
to grow. That figure is expected to grow 5.6% to reach 80.3 million this
year, according to eMarketer.
"Our opportunity is to make mobile gaming truly social by offering people
new, fun ways to meet, play and connect," Pincus said in the e-mail. "By
reducing our cost structure today, we will offer our teams the runway they
need to take risks and develop these breakthrough new social experiences."
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