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Zynga (ZNGA +0.6%) is laying off 520 employees, or 18% of its workforce, Kara Swisher reports....

Zynga (ZNGA +0.6%) is laying off 520 employees, or 18% of its workforce, Kara Swisher reports. The layoffs, said to be aimed at more strongly focusing Zynga towards mobile, will reportedly lead to the shuttering of the company's NYC, L.A., and Dallas offices, and also "the slashing of other infrastructure costs." $80M in staff savings are expected. Zynga has already been aggressively paring its headcount and investments in the face of slumping usage and revenue for its Facebook PC games; the company's R&D spend fell 31% Y/Y in Q1, and its sales/marketing spend 52%.
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Comments (13)
  • wigit5
    , contributor
    Comments (4218) | Send Message
     
    They still can't seem to figure out how to get Words with Friends to work properly on WP8... only app I've consistently had issues with.
    3 Jun 2013, 03:05 PM Reply Like
  • Yorick
    , contributor
    Comments (585) | Send Message
     
    Shocking that a company that gained fame from Farmville on Facebook is having growth problems.
    3 Jun 2013, 03:10 PM Reply Like
  • jsteinm1
    , contributor
    Comments (161) | Send Message
     
    More shocking that a company known for Farmville on Facebook once had a 10B valuation...
    3 Jun 2013, 10:59 PM Reply Like
  • Nocifer
    , contributor
    Comments (174) | Send Message
     
    It's good that they keep the cost down to go with reducing revenue stream in order to keep the company profitable without tapping in their hoard of cash that can serve them well in long run. They are just shedding off dying market of Facebook games making which is smart way to get rid of so they can be better positioned for gambling and mobile business. It makes no sense to keep same workforce power to continue to make more Facebook games which won't be good and profitable in long run..

     

    I just hope that cuts won't be "too" late to keep beat-the-forecast of Q2 ER goal.
    3 Jun 2013, 03:24 PM Reply Like
  • KJP712
    , contributor
    Comments (455) | Send Message
     
    Getting rid of personnel before a buyout.Happens all the time.Check the balance sheet,bigger companies will.You now have your lower entry point.Over-reaction to the news.
    3 Jun 2013, 04:17 PM Reply Like
  • Nocifer
    , contributor
    Comments (174) | Send Message
     
    Lol yes. It really sounds like an awesome buy-out by their doing *OR* they just decide to go private once again. They got very attractive balance sheet that big companies would have hard time to ignore. Zynga could end up accepting the buy-out if they continue to struggle on their own.
    3 Jun 2013, 04:23 PM Reply Like
  • KJP712
    , contributor
    Comments (455) | Send Message
     
    Cover your short while you can....
    3 Jun 2013, 04:25 PM Reply Like
  • financeminister
    , contributor
    Comments (977) | Send Message
     
    I regreted starting a small position in ZNGA 2012 after it dropped post IPO but now I feel good that I cut my losses back in September and used that money elsewhere. Pretty much realized that this company was overhyped and the stock wasn't going anywhere but south and its been that way ever since. I guess it's better off being a private company and making decisions for the long term instead of just the quarter.
    3 Jun 2013, 04:35 PM Reply Like
  • romilar
    , contributor
    Comments (699) | Send Message
     
    Just going to watch and wait. Long ZNGA...Rom
    3 Jun 2013, 05:47 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1477) | Send Message
     
    Now they will really have to use public transport and ride a bike...let us see how much they like it
    3 Jun 2013, 05:48 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3715) | Send Message
     
    ZNGA has made so many bad moves in the last few years, management knows it, the public knows it and their stock value shows it. I wonder how many of their employees were really let go or did these 520 workers move off to greener pastures? Some how the math of replacing 520 employees and saving $80mil means average savings of $153k per person seems like very good wages. Their labor force makes that kind of money? They should sub-contract their R&D anyways. Isn't that what AAPL & Google were doing?
    3 Jun 2013, 06:30 PM Reply Like
  • minecanary
    , contributor
    Comments (647) | Send Message
     
    Their fortunes are declining like the stock market after Fedville
    3 Jun 2013, 08:14 PM Reply Like
  • User 12750541
    , contributor
    Comment (1) | Send Message
     
    They made a billion pretty much overnight, they should cash in the profits unless their goal is to make that billion back to 0
    20 Jul 2013, 10:25 AM Reply Like
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