Since 2007, Zynga has provided gaming services for Apple and Android products?and social media sites. They pride themselves on bringing people together through gaming. Now, they’re being known for a dubious honor: downsizing.
Zynga is set to lay off over 500 people. For major corporations, that may not sound like much. But for this gaming service, that’s one in six of it’s work force! They’re expected to shut down offices in LA, New York and Dallas. Of course, their international offices in China and India will remain open. Their activity on Nasdaq stopped for a time. Sources say Zynga didn’t anticipate how quickly the rise of it’s mobile business would be, or how quick the decline it’s web business would be. They even shut down games that weren’t doing well.
This is an example of what happens to businesses that can’t keep up with technological trends. As quickly as they are happening, I guess this can serve as a lesson for companies everywhere. But I’m wondering if this is an overreaction. I’ve read reports that they’re doing these lay-offs to refocus toward mobile, not because they’re filing for bankruptcy.?I don’t see why they have to cut so many jobs to do that.?I noticed they’re cutting just American offices and not the foreign ones, so that raises my eyebrows. One?of my favorite games is Farm Ville,?so I hope Zynga can get it together. How do you think?Zynga will fair out from this crises?