I'm sure you know the drill by now.
The string of bad news for Zynga just keeps coming it seems. Just yesterday the company ended up trimming the fat so to speak. Unfortunately for them the fat included around 5% of it's actual remaining workforce. The company has certainly seen better days, and there really doesn't seem to be a light at the end of the tunnel in the foreseeable future for the onetime darling of the social gaming community.
You may remember from other Zynga news that I've posted that some of the more notable people, like the Words with Friends creators Paul and David Bettner, Chief Security Officer Nils Puhlmann, have already abandoned the company. They weren't laid-off but rather left of their own accord. At this point it really seems like they were probably leaving behind an obviously and rapidly sinking ship.
With these lay-offs also come rumours that more might be on the way, with the article mentioning that studios in Boston and Chicago may already be shut down and gone. What is known for certain is that the Austin studio suffered 100 lay-offs which seem to have included the complete teams that worked on The Ville and Zynga Bingo, the former of which has been the source of nothing but grief for the company because it brought the wrath of EA down on them for claiming to have copied The Sims Social.
This memo (which comes from IGN, somewhat fitting considering how I talked about them earlier in the week) pretty much confirms the grim news for the company, which in addition to the lay-offs also says that they are cutting 13 of their games and "significantly reducing our investment in The Ville."
It's hard to say how much of this comes from the legal troubles the company has been in as of late, and how much might just be the social gaming bubble bursting. I'm leaning towards more the former than the latter, but I certainly can't discount waning interest as a factor into why Zynga is now floundering.
I guess that it's hardly surprising, considering that even with all the people that play social games that reports indicate that as many as 85% of people that try a social game quit after one measly day of play. With such a fickle clientele it would seem that there's only so long that any company, let alone one with Zynga's utterly revolting practices, could have lasted.