On Monday, online poker gaming giant Zynga let go 520 of its employee and put a question mark on company’s future. According to Zynga it has plans to slash 18% of its jobs as regular fall in revenues and increased competition in market is making it hard for them to pay $70-$80 million every year as their salary. This decision has also affected the Zynga India center located at Bangalore. Their Indian unit which is dedicated to R&D will be seeing 6% of its employees to be laid off.
Mark Pincus, CEO of Zynga wrote an e-mail to its employees and 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 that this is necessary to move forward’’. He stated in one of his statement that the obviated loss to the organization will be somewhere around $25 million to $35 million in the second quarter of the year.
In past six months, Zynga has removed 18 of its high profile employees and towards the end of last year they have slashed 150 jobs. According to some unknown source the most affected locations by this decision will be Dallas, New York and Los Angeles. A regular loss in revenues and then Zynga’s such an act in panic has also affected its stock value. It went down from $3.41 to $2.96. The only good news for this gaming giant is that its world famous social game Zynga Poker is still holding up. Though it has also recorded some decline in its users but it is not very big.
Zynga has collaborated with Party Poker of bwin Networks this April for real cash poker in United Kingdom. As per our updates the new merger remained unaffected by the recent series of events.