Menu
All about computers
Google Plus racks up followers, but not all are devoted
Social media enables interactive jukebox
Social media puts HR ethics under the spotlight
Zuckerberg, Brin join forces to extend life
LinkedIn buys news app Pulse to broaden content
China, Romania key sources of hacking, report says
Japan, China, S. Korea to cooperate on air pollution
UP fitness wristbands get in stride with Android gadgets
More videogame players moving online
The new consoles from Microsoft, Nintendo and Sony
Tablet sales surge as consumers shun PCs
Coupled particles cross energy wall
High-efficiency zinc-air battery developed
Facebook unveils its 'home' on Android phone
A smartphone app to verify halal products
Google's Motorola to cut 10% of workforce
Google's recipe for excitement
Genetic analysis saves major apple-producing region of Washington state
Android gains US share at Apple expense, survey finds
China social media hailed after official toppled
Twitter tightens security after high-profile breaches (Update)
Tumblr deal sparks talk on next big tech target
Social game star Zynga slashes staff, closes studios
Apple prepares for first debt issue
Social game star Zynga slashes staff, closes studios
Struggling social games star Zynga said Monday it is cutting 18 percent of its staff as it refocuses on games for mobile devices.

"Today is a hard day for Zynga and an emotional one for every employee of our company," founder Mark Pincus said in a blog post as the company cut 520 jobs and closed several of the San Francisco-based company's studios.

Zynga shares slid more than 11 percent to $2.99 on the news.

The layoffs would be felt across the entire company, according to Pincus.

"None of us ever expected to face a day like today, especially when so much of our culture has been about growth,' Pincus said.

"But I think we all know this is necessary to move forward."

The company has been pulling the plug on unpopular games and investing in titles for play on smartphones or tablets, as well as its own online arena at zynga.com.

Zynga rose to stardom by tailoring games for play by friends on Facebook. But the two firms have grown apart in the past year as Facebook develops new revenue streams and Zynga seeks new consumers.

The company has also made moves into real-money gaming with the potential to generate windfalls from popular titles such as Zynga Poker.

The staff reduction was expected to be substantially completed by August and include the closure of Zynga offices in Los Angeles, New York, and Dallas.

"Mobile and touch screens are revolutionizing gaming," Pincus said in an email message to staff.

"By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences."

He promised that laid-off workers would receive generous severance packages.

Zynga forecast that it would end the current quarter with a net loss of between $28.5 million and $39 million due in part to expenses associated with the layoffs.

Zynga will take restructuring charges of $24 million to $26 million in the second quarter, and $2 million to $5 million in the third quarter. The annualized savings from the reductions will be $70 million to $80 million.

"While our Farmville franchise continues to perform well, other games are underperforming," Zynga said in a press release updating its earnings forecast.

Zynga shares fell in April after the pioneering social games firm hit quarterly earnings targets but revealed the number of players had ebbed.

Zynga reported that it earned $4.1 million on revenue of $263.6 million in the three months that ended on March 31, while Wall Street analysts had expected the company to register a slight loss.

Investors soured on the San Francisco-based firm's shares, however, with word that the number of people playing Zynga games daily had dropped when compared to the same period a year earlier.

During an earnings call with financial analysts, Pincus said 2013 would be a "transition year as we face the challenging environment on the Web and invest in developing the leading franchises and network across web and mobile platforms."
No health risk from Fukushima radiation, UN says
How flames change the sound of a firefighters' personal safety alarm
New Zealand police ordered to return Dotcom material
Australia spy chief says new building safe
Dell board recommends Michael Dell buyout offer (Update)
Micro-capsules and bacteria to be used in self-healing concrete
New nerve and muscle interfaces aid wounded warrior amputees
Ultrasound 'making waves' for enhancing biofuel production
USSR's old domain name attracts cybercriminals
Researchers design sensitive new microphone modeled on fly ear
New speaker system creates separate 'audio zones' for front and rear
Transportation fuels from woody biomass promising way to reduce emissions
Our ambiguous world of words
India's Infosys recalls founder as woes mount
Google interns meet their Hollywood counterparts
China trying new form of 'Internet censorship'
Motorola on authentication: We're talking tattoos and pills
US judge orders Google to turn over data to FBI
Yahoo! wraps US music tour with fun
Berlin company counts on the autistic
Adamant Apple in court to fight ebook conspiracy
Thousands rally against nuclear power in Tokyo
Push for US Internet 'wiretap' law faces tough road
Google nixes face-recognition features in Glass eyewear
3-D printing goes from sci-fi fantasy to reality
India's Infosys surges on founder Murthy's return
Apple battles ebook conspiracy in US court
Solar plane to get inflatable hangar after Midwest storms
Menu
Physical by smartphone becoming real possibility
Review: Google music plan solid, serendipitous
Smarty pants: Wearable electronics will recharge your life
Finnish start-up launches smartphone to rival giants
Samsung unveils new Galaxy S4 'Mini'
Google Drive sports new view and scan enhancements
Facebook joins Web freedom group
New method for mass-producing high-quality DNA molecules
WABIAN robot from Japan steps closer to human walk
Printing innovations provide tenfold improvement in organic electronics
Time is ripe for smartwatches, analysts say
Google coming out with two new Android phones
Taiwan makers showcase computers at Computex
"Is that a smartwatch you're not wearing?" Google's may actually appear
Waiting for Apple's iWatch
Internet's fast lane getting crowded
Cheap leases offered to spur electric car sales (Update)
Caterpillar will install no-doze system for mining trucks
Microsoft aims to simplify with Windows 8.1
Tesla promises to add charging stations
App helps prevent healthcare miscommunication
Cherished 'Start' button returning to Windows software (Update)
Android antiviral products easily evaded, study says
Hagel to broach topic of cyberthreats with Chinese