Social gaming company Zynga layoffs 18% share price tumbled 12%

Zynga's stock price trends Sina technology News Beijing Time June 4, social gaming company Zynga said in Monday that the company plans to cut some 18% employees and close some offices in order to reduce costs. Zynga says it plans to cut about 520 employees by August, and is expected to save about $70 million to 80 million dollars for the company. Zynga said it would spend about $24 million trillion to $26 million trillion in pre-tax restructuring in its second-quarter earnings, and in the third quarter it would be spending $2 million to $5 million trillion in pre-tax restructuring. In addition, another result of this retrenchment is the expected 15 million US dollar equity incentive payments to be withdrawn in the second quarter. Zynga estimates that the company's net loss in the second quarter will be $28.5 million trillion to $39 million trillion, up from the previous forecast of $26.5 million to $36.5 million, affected by layoffs and closures. Zynga also expects the second-quarter bookings (the sum of current revenue plus deferred income) to be in the lower half of the company's expected range in April. Zynga points out that while the Farmville game product line has performed well, other games have underperformed. At the same time, Zynga reiterated its second-quarter revenue and adjusted earnings forecasts. Zynga, headquartered in San Francisco, was founded in June 2007 by Mark Ping Cass (Mark Pincus), Macko Lexton (Michael Luxton) and Eric Schiermeyer, the company's most developed games are web games, Posted on Facebook and social networking sites like MySpace. At the beginning of its inception, Zynga's games were popular and became a leader in social gaming, but then their gaming appeal dropped and companies faced difficulties in attracting users back. Zynga's new game has failed to attract players and its financial performance has been slipping, in part because of the decline in the exposure of Zynga games to Facebook, which has traditionally been the main platform for Zynga's games. The number of virtual items paid for by users has declined as a result of a decrease in the number of users on the Facebook site using Zynga games such as Farmville, which has led to a steady decline in Zynga's sales. According to Zynga's earnings in April of this year, the company was unexpectedly profitable in the first quarter because of the massive cost-cutting measures it had taken. But the report also showed that Zynga's first-quarter bookings fell. On that day, Zynga fell 0.41 U.S. dollars in conventional Nasdaq trading and closed at $2.99, or 12.03%. For the past 52 weeks, Zynga has a top price of $6.36, the lowest price of 2.09 dollars. Zynga's shares have fallen 43% in the past 12 months. (Tangfeng)