The PC and games console world may have been bemoaning the success of social and mobile games but it seems that Zynga, the company behind ludicrously popular games like Farmville and Mafia Wars, is feeling the pinch. They have announced that they plan to shed 520 jobs across the whole of the organisation. The relatively new company enjoyed incredible success in its early years but it would seem that people are more interested in app type games for mobiles than they are in Facebook games.
Zynga was launched in April 2007 although, at the time, it was called Presidio Media. It changed name in July of the same year and the company’s first game, Texas Hold’Em Poker or Aynga Poker was released in the same month. They used a large sum of money raised from venture capital to acquire the game YoVille in 2008 and released Farmville in July 2009. Within just six weeks the game had 20 million daily active users. In the following months and years the company acquired a number of social games companies and app developers while continuing to launch Facebook games, as well as those on its own standalone platform.
The announcement that it will lay off some 520 people means that Zynga is shedding nearly 20% of its total workforce in various divisions across the world. They have said that it is a move to strengthen their financial position and so will be offered generous severance packages to those affected. It is believed that the cuts will save the company as much as $80m.