The market has not been kind to Zynga of late. They’ve just announced that they’re laying off 520 employees, which constitutes 18% of their staff. They’re also shutting down their New York, Dallas, and Los Angeles offices in a move to cut expenses and focus more tightly on mobile gaming.
In a blog post, CEO Mark Pincus says, “The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played.”
The announcement also lead to a 10.88% dip in Zynga’s stock price today:
Pincus says, “Because we’re making these moves proactively and from a position of financial strength, we can take care of laid off employees. We’re offering generous severance packages that reflect our appreciation for all of their work and we hope this will provide a foundation as they pursue their next professional steps.”
[Via All Things D]