Boston, MA 02/03/2014 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA) plans to turn around its misfortunes by slashing 15% of its workforce in the effort of reducing its wage bill and reducing costs of operation. Considered as one of the most popular game makers, Zynga has been struggling in the recent past something that has not been made better with the ever increasing competition. The game maker in its F2013 Q4 announced that it would slash 15% of its workforce to save roughly $35 million in 2014.
Zynga Inc (NASDAQ:ZNGA)’s chief executive officer Don Mattrick was quick to point out that such decisions are hard to make but necessary if the company is to stay afloat in the harsh market conditions and necessary to create a foundation for future growth. This move will see 314 employees lose their jobs to add to the 520 that lost their jobs in June last year. The company has been struggling in the market in the recent past having posted a net loss of $25.2 million in the fourth quarter of F2013. Its revenues dropped by $176.4 million a decline of 43.3%.
Zynga expands ventures into mobile gaming
Zynga Inc (NASDAQ:ZNGA) has not only been focusing on slashing its workforce, the company seems to be focusing more on the future having announced the acquisition of games developer NaturalMotion. The game developer that is mostly known for its famous “Clumsy Ninja”. The acquisition is thought to be about $527 million a move that it’s CEO Don Mattrick intends to use to ensure ZNGA focuses more on games for smartphones and tablets. Soon after the announcement the company’s stock rose by 17% to trade at a high of $4.18. Zynga Inc (NASDAQ:ZNGA) has been facing increased competition from its fierce rivals King and Electronic Arts Inc. Thus the much needed upgrade to try and focus more on smartphone’s games that NaturlaMotion is sure to provide.
