Feeds

Bye-Zynga: online games maker laying off 314 staff

Cost-cutting measure comes amid $527m acquisition

Beginner's guide to SSL certificates

Mobile game specialist Zynga has announced that it will be laying off some 15 per cent of its staff as part of a cost-cutting measure.

The company said that the cuts would make 314 people at the company redundant. The lowered payroll costs would be part of a plan by the company to same some $33-35m over the course of the 2014 calendar year. Zynga said that it expects to rack up some $15-17m in restructuring charges from the move.

Zynga, famous for social titles such as Farmville and Words With Friends, is no stranger to staff culls. Last year, the company laid off hundreds of employees in a cost-cutting effort and later relieved itself of several top executives.

The cuts come as the company is looking to pull itself out of the red and stem the loss of cash. Over its last quarter, the company said that it operated at a loss of some $25.2m, better than the $48.5m hit it took in the previous quarter.

"As we looked at our aspirations to run our live services and to create new games we wanted to create strong, dedicated teams that could succeed at the right size in relation to 2014 and beyond," CEO Don Mattrick said of the layoffs.

While Zynga may be cutting jobs in an effort to save money, the company is not shying away from investing hundreds of millions of dollars in other areas. Hot on the heels of word of the layoffs, Zynga revealed that it would be ponying up some $527m in cash and stock to acquire mobile games developer NaturalMotion.

The company said that in addition to gaining the Clumsy Ninja and CSR Racing mobile game titles, the acquisition would give Zynga access to NaturalMotion development tools such as the Euphoria animation engine.

The merger will bring on board some 260 NaturalMotion employees with offices in both the UK and San Francisco. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.