Zynga CEO Mark Pincus has confirmed more cuts coming to beleaguered casual game company Zynga – 18% of the work force. Their New York, LA, Austin and Dallas studios are shutting down.
Love ‘em or hate ‘em, a few years back, Zynga was the biggest thing. Everyone wanted to mimic their success. Now, it appears that everything is falling apart for them.
Pincus states in his blog post on this:
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.
These moves, while hard to face today, represent a proactive commitment to our mission of connecting the world through games. Mobile and touch screens are revolutionizing gaming. Our opportunity is to make mobile gaming truly social by offering people new, fun ways to meet, play and connect. By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences.
It is unfortunate for those employees, but at least they are apparently getting generous severance packages. It appears to be a terrible recurring trend in the industry at the moment – massive retrenchments from development houses.
What do you think of the new focus on mobile gaming? Will it be successful for companies in the end, or just another technology fad?