MOBILE GAME DEVELOPER Zynga will shed almost a fifth of its workforce as it tries to tackle falling value.
The firm is the machine behind such time wasters as Farmville, the crop rotating game that smashed its way across Facebook.
Recently though its financial results have not been so merry, and at its annual shareholders meeting it dropped a bombshell by saying that it will cut 520 jobs and close some offices.
In a statement the firm called the measures "substantial cost reductions", explaining that they will help it realise annual cost savings as much as $70m to $80m, pre-tax.
"Today is a hard day for Zynga and an emotional one for every employee of our company. We are saying painful goodbyes to about 18 [percent] of our Zynga brothers and sisters. The impact of these layoffs will be felt across every group in the company," said founder and CEO Mark Pincus.
"None of us ever expected to face a day like today, especially when so much of our culture has been about growth. But I think we all know this is necessary to move forward. 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."
Zynga has updated its outlook for the second quarter, and forecast a net loss in the region of $28m to $40m.
"I want to thank every one of you for the spirit, creativity and energy that you've invested in Zynga," added Pincus.
"You've reintroduced a generation of people to gaming and through these games offered them new ways to connect with their families, make new friends and even sometimes find love." µ
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