Zynga Announces Dramatic Staff Layoffs

Anyone following the progress of giant gaming developer Zynga can certainly claim to be on a wild roller coaster ride which never ceases to surprise. As our regular readers are all too aware Zynga is struggling to return to their status and share price of their IPO launch. Only a year ago Zynga were sitting pretty at the top of the social gaming pyramid with their giant partner Facebook solidly behind them.

So many things have happened since which have seen the share price drop but one of the main factors is without a doubt their CEO Mark Pincus’ strategic mistake of focusing on the web and less on mobile. Anyone following online gaming knows that real growth is in the mobile arena. Granted the pace at which mobile has overtaken the web market has surprised many including Pincus himself who has admitted that it was a strategic mistake to not focus more on mobile.

To combat this Zynga has had to make drastic changes to their management and overall infrastructure. However yesterday’s blog post of Pincus announcing an 18% layoff of company staff and lowering of second quarter earnings was at an all-time low for the struggling giant. While this latest downturn seems a serious obstacle for their recovery many believe that there intended entry into the real money gambling arena in the coming months could well be a major step in turning things around.

In fact there are voices pointing out that these painful measures taken by Pincus may be the best thing in order to rebuild a smaller and more effective social and real money gaming entity that will be lean and mean and ready to take on the many challenges lying ahead of them.

For the full press release click here.

Be Sociable, Share!

Leave a Reply

Your email address will not be published. Required fields are marked *