Zynga will lay off 18% of its workforce as part of a cost reduction plan to save $100M

Zynga will lay off 18% of its workforce as part of a cost reduction plan to save $100M
Zynga will lay off 18% of its workforce as part of a cost reduction plan to save $100M

Zynga will lay off 18% of its workforce as part of a cost reduction plan to save $100M, the company mentioned during the announcement of its first quarter 2015 financial results. Even with some progress when compared to the same period last year, Zynga mentioned via a press release some 364 employees will be losing their jobs by the end of the year.

“For our people, we need to create an empowered, entrepreneurial culture that fosters more creativity and innovation. Over the years we’ve seen that tighter, more nimble teams can drive faster innovation and deliver more player value,” said Zynga CEO Mark Pincus. “As a result, today we announced a cost reduction program to focus, simplify and align us against our most promising opportunities. We expect these cost reductions to generate $100 million in annualized savings. We are reducing our workforce by 364 people or approximately 18%, decreasing our outside services and reducing our central functions. This was a hard but necessary decision and I believe this plan puts us in the best long term position for success.”

Zynga just launched a new game just yesterday called Empires & Allies (the company’s first mobile action/strategy game) worldwide .

Also, the company announced that from now on it will also focus on five categories of games (Action Strategy, Social Casino, Invest & Express, Casual and Racing). It also plans to release “between 6 to 8 new mobile games” this year.

Fans may remember the return of Zynga CEO Mark Pincus after Don Mattrick left the position.

[Source]: Zynga: Zynga Announces First Quarter 2015 Financial Results.

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