Report: Over 100 layoffs at Zynga

Report: Over 100 layoffs at Zynga
Seth Tipps

By Seth Tipps

October 23rd 2012 at 8:49PM

Boston studio shuttered as two thirds of Austin studio staff cut

[Update: Zynga CEO Mark Pincus has confirmed the layoffs as well as further potential office closures and 13 canned titles. You can read the full story and statement here.]

Original story: Reports from various sources claim Zynga has made dramatic cuts at its Austin studio, and may have shuttered its Boston office entirely.

The giant of social gaming has been going the way of Goliath since its IPO last December, with stocks hitting an all time low today of $2.18.

An exodus of executives this summer has added to the Biblical scale of the calamity that now befalls the company that brought social games to the forefront of industry attention.

While accounts vary, Tech Crunch reports that over two-thirds of Zynga's Austin office has been laid off, and the company's Boston studio has been shut down entirely.

Gamasutra reports that Chicago may also be in line for downsizing.

Sources say that mobile developers may be safe, as Zynga is trying to move its business to smartphones.

News of the layoffs broke when Justin Maxwell tweeted that a friend and more than a hundred other Zynga Austin employees had been laid off, and given just two hours to clear their desks.

The layoffs are said to be focused on the teams working on The Ville and Bingo.

Zynga was sued by EA for alleged similarities beween The Ville and The Sims Social, though it is unclear if the suit is in any way related.

Develop has reached out to Zynga for confirmation of the news, and will keep abreast of the situation as it unfolds.