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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.
