During Apple’s iPad event yesterday, FarmVille creator Zynga said it was laying off over 100 employees from the firm.
The decision to announce the news during the event is undoubtedly one of the ways it hoped to avoid bad press, but, clearly, that didn’t work out as planned.
The financially struggling firm confirmed it has let go of 5% of its full-time workforce, which has led to the closure of its Boston studio and considerably reducing staff at its Austin division.
Zynga is also due to close its UK and Japan studios, as well as retiring thirteen older games and “significantly reducing” the firm’s investment in The Ville.
“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,” said Zynga CEO Mark Pincus in an internal email. “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.
“These reductions, along with our ongoing efforts to implement more stringent budget and resource allocation around new games and partner projects, will improve our profitability and allow us to reinvest in great games and our Zynga network on web and mobile.”