As part of Zynga’s campaign to reduce their costs and get the company back on track, Zynga will be shutting down 11 of its games and laying off 5% of its employees. This comes after Zynga shut down operations at their Japan studio last month, Boston in October, and a partial shutdown in Austin in October as well. See the list, and comment from the CEO, Mark Pincus, below:
PetVille – Shut down December 30th
Mafia Wars 2 – Shut down December 30th
FishVille – Shut down December 5th
Vampire Wars – Shut down December 5th
Treasure Isle – Shut down December 5th
Indiana Jones Adventure World – Closed to new players, shuts down January 14th
Mafia Wars Shakedown – Pulled from app stores
Forestville – Pulled from app stores
Montopia – Shut down December 21st
Mojitomo – Pulled from app stores
Word Scramble Challenge – Pulled from app stores
All of this comes from the drop of Zynga’s stock which is down to $2.34/share from $10/share last year. (ZNGA)
Here are the details from the CEO himself:
INTERNAL NOTE FROM ZYNGA CEO AND FOUNDER, MARK PINCUS
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.
As part of these changes, we’ve had to make some tough decisions around products, teams and people. I want to fill you in on what’s happened and address any concerns you may have.
Here are the most important details.
We are sunsetting 13 older games and we’re also significantly reducing our investment in The Ville.
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. All of these represent terrific entrepreneurial teams, which make this decision so difficult.
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 5% 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.
This is the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors.
These reductions, along with our ongoing efforts to implement more stringent budget and resource allocation around new games and partner projects, will improve our profitability and allow us to reinvest in great games and our Zynga network on web and mobile.
Zynga made social gaming and play a worldwide phenomenon, and we remain the industry leader. Our success has come from our dedication to a simple and powerful proposition – that play is not just something people do to pass time, it’s a core need for every person and culture.
We will all be discussing these difficult changes more with our teams and as a company. Tomorrow, Dave and I will be hosting a post-earnings webcast (details to follow) and next week we will be discussing our broader vision and strategy during our quarterly all-hands meeting. I’m confident this puts us on the right path to deliver on the promise of social gaming and make Zynga into an internet treasure.
If you have any immediate questions, I hope you will talk directly with your manager, Colleen, or me.
I look forward to talking with you tomorrow.