Zynga, the social gaming app development company behind many popular games including FarmVille and Words with Friends, is closing multiple offices and laying off 520 people, about 18 percent of its staff in a move to cut margins. The company says this move will save them about $70-80 million in expenses.
Here is more from the press release:
The workforce reduction will occur across all functions and is expected to be substantially complete by August 2013. Zynga will record pre-tax restructuring charges of approximately $24 million to $26 million in the second quarter, and $2 million to $5 million in the third quarter. Zynga also expects to record an estimated $15 million reversal of stock-based expense in the second quarter of 2013 as a result of the net impact of these workforce reductions.
Despite the layoffs, the company is still hiring in some positions across its locations. According to the company’s website, there are jobs available in its San Francisco, San Diego, Seattle and Beijing offices, among other places.