We heard the ramblings and the rumors but it was confirmed shortly after Apple’s product announcement on Wednesday.
Zynga Inc. went on a layoffs spree yesterday letting go of 2/3rds of the employees in its Austin office and completely closing down its Boston office. Members of The Ville and Bingo teams were not spared either.
So let’s backtrack…HOW has Zynga been doing?
Zynga IPO (initial public offering) opened at $1 billion with $10 dollars a share. I’ll be the first to admit, I’m not a big numbers girl but being in the tech scene, you have to stay on top of companies when they go public i.e Facebook, Path, etc. Since debuting late last winter, shares have dropped to just 2.39 a share and layoffs have been consistent.
Their user retention hasn’t recovered since the proclamation that Facebook games are just not IN. With TheVille dropping from down from 26.2 million monthly active users to just 17.5 million and Bingo struggling with 5.8 million to 5.4 million monthly users in just a month. Numbers don’t lie here folks.
So what’s the future?
In a memo released to staff about the layoffs, CEO Mark Pincus continues:
Earlier today we initiated a number of changes to streamline our operations, focus our resources on our most strategic opportunities, and invest in our future. We waited to share this news with all of you until we had first spoken with the groups impacted.
He goes on to further state that:
In all, we will unfortunately be parting ways with approximately 5% of our full time workforce. 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. We appreciate their amazing contributions and will miss them.
It’s truly a sad year for the company but I’m positive that they will bounce back from this. Mobile gaming still holds clout in the gaming space on devices. With targeting and developing in that arena, they should be able to pivot from their current model and produce the awe inspiring content that rose them to fame in the early Farmville days.
So if you’re listening Zynga, focus on mobile. The user base is there. We are rooting for you. Just stop with the corny Facebook notifications. We are all tired of them.
Is Zynga run in gaming totally dead?
Are we just over all of those Facebook notifications from cousins/aunts/bosses you wish would go away?