The health and future of Zynga is officially on the rocks. This week the company, often hailed as a pioneer of the mobile gaming industry, has cut their staff by 364. The layoffs come just weeks after Mark Pincus was named the CEO of the company, for the second time. Pincus stated, upon his return, that he would be restructuring the staff in an attempt to revive the faltering company. Pincus was the founder of the company before stepping down.
While Pincus’ decision is not favorable for employees, investors seem to see it as a potentially bright spot. After the announcement was made after hours trading rose 6%. The company has also release positive earning reports for the first time in several quarters.
Zynga was founded in 2007 in San Francisco. They have brought games such as Farmville and Chefville to Facebook users. Zynga is also responsible for Words With Friends, which is a favorite at the offices of Amen Clinics. The company’s popularity began to fall off when users started moving their Facebook gaming directly onto mobile platforms, according to the Washington Post. Zynga also came under fire for game quality issues and intrusive ads in recent years.
Pincus’ goals appear to be to stabilize the company and get back to the business of dealing with mobile gaming. While their partnership with Facebook appears to be the company’s most successful releases
they’ll need to move in a new direction and focus on app development if they are to regain the top spot in mobile gaming.