Zynga Announces Mass Layoffs in Cost Reduction Bid

Zynga Announces Mass Layoffs in Cost Reduction Bid(Ping! Zine Web Tech Magazine) – Zynga recently had some bad news for employees: 520 of them would be laid off.

The move was made as part of a cost reduction announced by the social game provider on Monday.

The laid off work force represents 18% of the company’s employee base globally.

In addition to that, the company also said it anticipated a net loss of between $39 million to $28.5 million for 2013’s second quarter.

“The workforce reduction will occur across all functions and is expected to be substantially complete by August 2013. Zynga will record pre-tax restructuring charges of approximately $24 million to $26 million in the second quarter, and $2 million to $5 million in the third quarter. Zynga also expects to record an estimated $15 million reversal of stock-based expense in the second quarter of 2013 as a result of the net impact of these workforce reductions,” stated Zynga via a press release.

Meanwhile, Zynga noted its FarmVille Franchise was performing well while other titles were struggling. According a report from Venture Beat, stock in the company dived 12% following the announcement.