Zynga to Cut Workforce by 18% and Shuts Down Data Centers to Reduce Annual Expenditure by $100 Million
Aishwarya Bhatt | | May 07, 2015 09:02 AM EDT |
Zygna declared that they are planning to cut their workforce by 18 percent and close down data centers in order to reduce its annual expenditure by $100 million. The company revealed its losses, which amounted to millions and this is a brazen move in an apparent bid to cut down expenditures.
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The company is also planning to totally shut down its video-game category in the sports domain as they wanted to focus more on the quality of their existing game-lineup. As a result of shutting down the sports category, a Tiger Woods Golf game that was being developed has now been canned.
In order to curb costs, the company is also planning to shut down their data centers and instead hire them from Amazon as and when the need arises.
As a result of the cut-offs, more than 350 people are expected to lose their jobs. The plan for curtailing expenses was revealed by Zynga's founder - Mark Pincus. He has recently returned back to the company fold and taken over the top spot from Don A. Mattrick.
Mattrick was the CEO of the company for over two years and during that time, he had tried to position Zynga as a top contender in the mobile games space. He also ventured into new categories such as sports, even though he was not very successful in this endeavor.
Pincus lauded Mattrick's efforts in the mobile domain but also added that it is very tempting to make a foray into all the available avenues. As a result of the recent losses suffered by the company, he is planning to shift their focus on their core competencies.
In an interview, he said that, "What I believe we need is to narrow our focus. We have plenty of great opportunities in front of us. What we need to do now is intensify our focus around these opportunities."
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