The reason for the job cuts was to cut costs, the cuts are expected to save $70 million to $80 million in annualized cost.
In a move that the social-gaming site’s founder Mark Pincus described as “necessary to move forward.”
In a memo released to staff, Pincus said the reductions were part of Zynga’s strategy to become more competitive in the gaming market, particularly in the mobile arena.
“Mobile and touch screens are revolutionizing gaming” he said. “Our opportunity is to make mobile gaming truly social by offering people new, fun ways to meet, play and connect. 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.”
Shares for ZNGA dropped down to $2.99 and are currently on offer for around the same price from $3.41 a share prior to the announcement.