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November 1, 2014

Zynga fires yet more staff as they collapse further in disarray


Zynga logoIt seems like mere weeks ago that the social gaming company Zynga was ready to branch out from their Facebook home, and create an all inclusive online poker site for their loyal fans that would involve real money gambling. In what has felt like weeks, but has actually been a little over two months, things have suddenly taken a very dramatic turn at the world’s most popular social gaming company.

Zynga have for a couple of years now, been the Facebook’s predominant games production company; however new changes in the company have meant that as much as five percent of its worldwide staff have been laid off. This amounts to roughly 2,850 people. So the questions being asked are, what has happened, and when did it happen?

Zynga has recently closed their offices in the United Kingdom and Japan, with the new jobs losses affecting primarily the United States. According to a letter handed to employees from Zynga’s Chief Executive Officer, Mark Pincus, the axes come as Zynga prepares to reduce operational costs. Data housing, advertising and service contractors are also believed to have been cut.

According to further information from the letter, it is believed Zynga are cutting all unnecessary wings to focus exclusively on what they feel to be strategic opportunities to invest in their own future. In a world of economic crisis, one could hardly blame them, though a great many feel as though there is simply more to it than this.

Zynga currently has many online gaming titles spread across the internet, the vast majority of them available to play on demand via the Facebook social network. Zynga have announced that as many as thirteen of these titles might soon disappear from the internet, as the company plans to put most of its time and development into the online poker market.

Zynga was scheduled to reveal information about a new online poker site that would offers players the chance to play for both real and artificial money at the site, though such information is as of yet, not forthcoming. Zynga shares have also taken a nosedive in recent weeks, and are continuing to do so following the news of the sacking. Facebook has also been taking hits at an unexpected rate in recent months since floating themselves on the stock market.

However Zynga, without the online social networking games (which do generate funds for the company), are banking on reaping the rewards a full online gambling poker site would bring with it; though there is one problem yet undressed at the moment. The United States has still not ratified laws to legalize online gambling in the country, so just where there intake would come from, remains to be seen.


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