Founder and CEO of Zynga, Mark Pincus, has confirmed that 5% of the organization’s workforce will be laid off due to a cost reduction plan designed to increase efficiency.
Pincus explains that the cost reduction plan is part of internal changes within Zynga, and will include cuts in spending on expenses such as data hosting, advertising, and hiring contractors. Pincus believes that this will advance Zynga’s success in the future.
Pincus further detailed in a memo that Zynga will be closing down its Boston studio, and is proposing to close its Japan, and UK studios.
Along with the layoffs and closing studios, Zynga will also be decreasing its investments in 14 of its older games, including ‘The Ville’.
“I’m confident this puts us on the right path to deliver on the promise of social gaming and make Zynga into an internet treasure,” Pincus stated. “We don’t take these decisions lightly, as we recognize the impact to our colleagues and friends who have been on this journey with us. We appreciate their amazing contributions and will miss them.”