Zynga has announced it will be laying off 18 percent of their mobile and social staff, around 520 people. The company cites stabilizing finances for the mass firing. According to Zynga's official announcement laid off employees will be receiving severance packages.
In their official statement, CEO Mark PIncus said:
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.
According to CNN Money a Thomson Reuters report stated Zynga was expected to lose US$27.6 million dollars in the first quarter of 2013. However the company is now reportedly expecting a net loss somewhere between $28.5 and $39 million for the quarter. Zynga's stock fell 12 percent with the news.
Zynga perviously cut 5 percent of its staff in October 2012.