Zynga CEO reaches out to employees about layoffs

Zynga CEO Mark Pincus sent a somber note to employees following the news of massive layoffs at the social gaming company.

Zynga CEO Mark Pincus sent a somber note to employees following the news of massive layoffs at the social gaming company.

As first reported by AllThingsD, Zynga will lay off 18% of its workforce, or 520 of its approximately 2,900 employees, in its largest round of layoffs. The company confirmed the report Monday in a press release, saying it plans to complete the layoffs by August and save an estimated $70 million to $80 million as a result.

Zynga will also reportedly close offices in New York, Los Angeles, and Dallas.

“The impact of these layoffs will be felt across every group in the company,” Pincus wrote in a blog post. “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.”

Zynga, which has struggled to build its mobile business, will refocus on a mobile strategy, he said.

“The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played,” he wrote.

This is not the first of Zynga's troubles. Last October, the company eliminated 13 games and cut about 5% of its workforce in its first round of layoffs.

On Monday, Zynga sent email notifications to the latest employees who will be let go. The company is also offering “generous severance packages” to the laid-off staffers, according to Pincus.

Zynga did not immediately return a request for comment on whether communications and marketing staff will be affected by the cuts.

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