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Zynga cuts 13 games and 5 percent of staff in a move to regain profitability

Zynga cuts 13 games and 5 percent of staff in a move to regain profitability
Ahead of its Q3 financials - now assumed to be very difficult - Zynga has announced it's cutting around 5 percent of its workforce.

In an open letter to staff, CEO Mark Pincus said the company was closing its Boston studio, and proposing to close its Japan and UK offices. Zynga Austin has also lost a substantial number of jobs.

That's over 100 positions; indeed it's suggested that losses at the Austin studio alone could be into three figures.

"Earlier today we initiated a number of changes to streamline our operations, focus our resources on our most strategic opportunities, and invest in our future. We waited to share this news with all of you until we had first spoken with the groups impacted," Pincus' email stated.

In terms of the impact on the games, Zynga is dropping support - or sunsetting - 13 games and "significantly reducing" its investment in Facebook game The Ville; a title over which it's involved with a copycat lawsuit from EA.

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Prior to its IPO, Zynga went on a buying spree, acquiring dozens of small developers, which it has seemingly failed to integrate into a coherent business.

Next week, Pincus the company would be discussing its 'broader vision and strategy during a quarterly all-hands meeting'.

The move comes as Zynga looks gain profitability and deal with a share price which has declined to around 20 percent of its $10 IPO float level.
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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