Zynga sheds five percent of workforce

GAMES DEVELOPER Zynga is retrenching by laying off five percent of its staff and "sunsetting" 13 games.

The company made the announcement last night during the news attention vacuum that surrounds an Apple product launch, in this case that of the Ipad Mini and other things that start with an "I".

Just in case anyone thought that Zynga was trying to bury the news it has blogged about it. It expressed disappointment and other appropriate sentiments.

The blog post sees the firm publishing a note that was sent around the offices internally. In it Zynga CEO Mark Pincus says that the firm didn't want to let anyone know what was happening until it had advised those employees affected.

"Earlier today we initiated a number of changes to streamline our operations, focus our resources on our most strategic opportunities, and invest in our future. We waited to share this news with all of you until we had first spoken with the groups impacted," he said.

"We are closing the Zynga Boston studio and proposing closures of the Zynga Japan and UK studios. Additionally, we are reducing staffing levels in our Austin studio... In addition to these studios, we are also making a small number of partner team reductions. In all, we will unfortunately be parting ways with approximately [five] percent of our full time workforce."

Pincus added that the firm is pulling investment out of "The Ville", the firm's Sims-like game that it is being sued over by Electronic Arts.

The news follows Zynga's earlier earnings warning. µ