FarmVille creator Zynga has cut a fifth of its workforce and closed three US offices in the wake of stumbling shares and predicted net losses.
Founder Mark Pincus said it’s a “sad day” for the company. “None of us ever expected to face a day like today, especially when so much of our culture has been about growth. But I think we all know this is necessary to move forward,” he said in a blog post.
Offices in New York, Los Angeles and Dallas will close their doors, leaving 520 staff out of a job.
It’s a rapid descent from the seemingly limitless popularity the firm experienced in 2009, when it launched the build-your-own farm game on Facebook.
In 2011 it went public, but since then has failed to hit the same peaks it achieved with FarmVille.
Zynga, which chose to focus on Facebook-friendly game development, continues to suffer as more users access the social network via smartphone.
(Source: The Telegraph)