Zynga CEO confirms layoffs of 5% of work force

By Steve Watts, Oct 24, 2012 8:15am PDT

Zynga CEO Mark Pincus has confirmed yesterday's reports of massive layoffs across multiple studios. In a letter, Pincus said the company cut 5% of its total staff, and closed its Boston studio entirely. It has also proposed closures to the Japan and UK studios.

The letter, sent to remaining staff and provided to VentureBeat, states that the company is "sunsetting 13 older games" and reducing its investment in The Ville, which is currently facing an infringement suit from EA. This comes just after a Facebook earnings report noted that Zynga's contribution to the company's revenues have dropped 20%.

"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," Pincus said in the letter. "We appreciate their amazing contributions and will miss them.

"We will all be discussing these difficult changes more with our teams and as a company. 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."

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