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Zynga Layoffs Cause Boston Office Shutdown

On Tuesday, news of Zynga layoffs went viral in the tech world. Zynga, the game company behind Farmville, The Ville, Mafia Wars and CityVille, laid off 5 percent of its workforce and shut down its Boston office to cut costs.

On Tuesday, news of Zynga layoffs went viral in the tech world. Zynga, the game company behind Farmville, The Ville, Mafia Wars and CityVille, laid off 5 percent of its workforce and shut down its Boston office to cut costs.

“This is the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors,” wrote Zynga CEO Mark Pincus in a staff memo published on the company’s blog. Pincus’ announcement confirmed earlier tweets and reports by friends of former Zynga employees.

The Zynga layoffs were announced during Apple’s iPad Mini event; TechCrunch posits that this may have been to minimize the bad press such staffing changes would inevitably cause. Zynga has been taking a beating lately. Its user bases in TheVille and Zynga Bingo have both dropped significantly in the last 30 days.

Do you think Zynga can recover, or is this company in some serious trouble?

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(Photo credit: TechCrunch)

Marissa Brassfield
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