Zynga says folks just aren't as enthusiastic about its games as before. Even new announcements don't garner the attention they used to. As a result, the five year old company will be closing its studio in Boston and possibly those in Japan and the UK. Staff in Austin Texas will be looking at pink slips.
Mark Pincus CEO made the announcement in an online message to employees. He said “We don't take these decisions lightly.” In its short run, Zynga rose from 100 employees to just under 3,000. Now they are looking at reducing their staff by five percent.
The games, such as Farmville, were supported by Facebook, but the company since has had less cooperation from the social network company. Zynga's contribution to Facebook's revenue dropped from 12 percent to 7 percent over the past year. Zynga, like Facebook, has seen its share price dropping. However, with news of cutbacks, Zynga stock edged up a mere ten cents after hours to $2.30.
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