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Zynga closes LA, New York, Austin and Dallas studios
Zynga CEO Mark Pincus has just confirmed the company will let go of 18 percent of its work force. "None of us ever expected to face a day like today, especially when so much of our culture has been about growth," wrote Pincus on the company blog. "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." The confirmation comes a half hour after AllThingsD reported the 18 percent layoff number, which the site estimates at approximately 520 employees. Although Pincus doesn't mention studio closures, Zynga's New York, Los Angeles, Austin and Dallas studios are shutting down. The company has halted trading on the Nasdaq in wake of the news. We've followed up with Zynga for more information and confirmation of the studio closures. Zynga's bad news train is at full steam in 2013, with even more executive departures, financial losses, layoffs and closures. Update: Zynga would not confirm the studio closures, but has updated its financial outlook with a $28.5 million to $39 million loss for the second quarter. We've placed the full outlook update after the break.
Zynga's online gambling initiative to launch in the UK next year
Zynga CEO Mark Pincus is making good on his promise to expand the social/mobile developer's grasp into the world of online gambling in the first half of 2013, according to Gamasutra. As expected, the roll-out will take place in Not America -- the United Kingdom, specifically.Facilitating this expansion is bwin.party Digital Entertainment, an existing online gambling operator that has partnered with Zynga to aid in its transition from fake addictions to the real deal. Zynga's first title in this new space will be a slots simulator based on the Farmville franchise, which may explain why the Zynga Slots team was the only one to survive this week's layoffs at Zynga Austin.
Zynga CEO Mark Pincus: Boston closing, Austin reducing, 5% of full-time staff laid off
Zynga is laying off 5 percent of its full-time workforce, closing its Boston studio and significantly reducing staff at its Austin studio, CEO and founder Mark Pincus writes in a letter to employees. Zynga is proposing closures of its Japan and UK studios, retiring 13 older games and "significantly reducing" its investment in The Ville."In addition to these studios, we are also making a small number of partner team reductions," Pincus writes. "In all, we will unfortunately be parting ways with approximately 5 percent of our full time workforce. We don't take these decisions lightly as we recognize the impact to our colleagues and friends who have been on this journey with us. We appreciate their amazing contributions and will miss them."As part of a larger restructuing, Zynga is cutting "spending on data hosting, advertising and outside services, primarily contractors." Pincus says these measures will "improve profitability" and allow the company to "reinvest in great games."Pincus will host a webcast tomorrow, following its earnings report. There is no word of the Zynga Chicago studio losing staff, as was rumored earlier today. Read Pincus' full letter below.
Rumor: Zynga shedding staff in Boston, Austin, Chicago [Update: Letter from CEO]
Twitter is on fire with messages that Zynga offices in Boston, Austin and Chicago are closing down. We have contacted Zynga and its employees for clarification.An employee at Zynga Austin tells Joystiq, "So what I know as of now that The Ville and Bingo teams were cut. I don't know anything about Chicago at the moment." Zynga Austin is responsible for The Ville, Zynga Bingo and Slots, meaning this cut leaves just the Slots team. There are about 70 people left at Zynga Austin, the employee says.Zynga Boston General Manager Fareed Mosavat is tweeting out job offers in the city, writing, "The outpouring of support for us has been incredible. Love this Boston scene."Zynga Boston is behind Facebook game Adventure World, and comprises employees from Zynga's acquisition of Conduit Labs in 2010. In March 2011 it acquired Floodgate Entertainment, and by September 2011 Zynga Boston had 35 employees, some recruited from MMO developer Turbine.Update: Zynga CEO Mark Pincus sent out a letter to employees that confirms the closure of its Boston studio and a significant reduction at its Austin studio, resulting in a loss of 5 percent of its full-time employees, among other changes. Read the letter here.
Sony Online Entertainment senior producer becomes Zynga Austin GM
At Sony Online Entertainment in Austin, Texas, John Blakely headed up projects ranging from Star Wars Galaxies to DC Universe Online. Now, Blakely is leading Zynga's Austin-based offices, acting as general manager for the studio in a move spotted this past week. Blakely's LinkedIn profile indicates he's been with Zynga Austin since some point in April of this year. SOE confirmed Blakely's departure in a statement, thanking him for "the passion and leadership he brought to work every day," and noting that the company "fully supports him in his future endeavors." Zynga could not be reached for comment as of publishing, though it stands to reason that the social media giant isn't exactly unhappy with the acquisition. Executive director of development, Lorin Jameson, will fill Blakely's spot at SOE.
