US social games maker Zynga lays off 314 employees
Social games maker Zynga is laying off about 314 of its employees. This number accounts for 15% of the company's total workforce. The news comes as the company has snapped up NaturalMotion in a half-billion-dollar deal, according to TechCrunch.
The layoff is part of Zynga's cost reduction strategy that aims to generate between $33 million to $35 million in savings for 2014. The target excludes a restructuring charge estimated to be $15 million to $17 million, the report detailed.
According to Chief Excecutive Don Mattrick in an interivew, the layoff would mostly be taken from infrastructure areas. He said the strategy would not lead to the shutdown of any studios, the report said.
Zynga currently has around 2,000 workers at a time when its more superior competitors' headcounts are very far from that number. Supercell has around 130 employees and is producing $200 million in quarterly revenue, the report said.
Since Mattrick sat down as the company's chief and took Mark Pincus' place, Zynga has undergone a series of layoffs , reduced the size of the middle management, and shut down non-performing games. The company has also let go of 520 employees last summer, TechCrunch reported.