Farmville creator Zynga cuts jobs by 5%, closing some studios

By on Oct 24, 2012 in Business, Gaming, Technology Comments

Zynga, creator of Farmville, Mafia Wars, and Words With Friends, announced on Tuesday, October 23, 2012 that it will be implementing cost reduction measures, including closing studios in UK, Japan, as well as in Boston, Massachusetts, and Austin, Texas, affecting around 5% of their workforce.

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Zynga’s Farmville
Image Credit: Facebook

As noted at company blog that day, Zynga founder and CEO Mark Pincus sent a letter to all employees, informing them about the implementation of the changes in the company structure, along with some details of the company-wide cost reduction projects.

“We are sunsetting 13 older games and we’re also significantly reducing our investment in The Ville. We are closing the Zynga Boston studio and proposing closures of the Zynga Japan and UK studios. Additionally, we are reducing staffing levels in our Austin studio.” Mark Pincus was quoted on his letter.

“All of these represent terrific entrepreneurial teams, which make this decision so difficult. In addition to these studios, we are also making a small number of partner team reductions. In all, we will unfortunately be parting ways with approximately 5% of our full time workforce.” Pincus added, noting that investment for data hosting, advertising, and outside services will also be affected.

According to Guardian, this is first ever Zynga job cuts, noting that the San Francisco-based social game services provider has around 3,200 employees, which means around 160 employees will be losing their jobs. The company also provides about 12% of Facebook‘s total revenue, having 5 of the 10 most popular Facebook games.

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