Zynga Laid Off Over 100 Employees During The Apple Event

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[ Gaming]

Apple took over the Internet news cycle today with the announcement of the iPad Mini. The news would obviously drown out anything else, including mass layoffs at one of the largest social game developers in the world. Nobody would be that stupid to try a stunt like that though, right?

That seems to be exactly what happened during the iPad Mini event as Zynga is rumored to have laid off over 100 employees from its Austin studio. There are similar layoffs being reported from its Chicago and Boston offices as well.

The news first broke less than an hour ago when Justin Maxwell, a friend of a Zynga employee in Austin, reported the lay offs via Twitter.

He later clarified that the teams let go were those behind The Ville and Bingo. He also said that the news comes from a friend and that it’s not an official announcement from Zynga. Gamasutra reached out to other sources, however, and were able to confirm the layoffs at the Austin studio.

Speaking to another source, Joystiq was able to confirm that the The Ville and Bingo teams were indeed cut. The Austin studio still has about 70 employees left working on Zynga Slots. The company’s simulated gambling division is still doing relatively well so it makes sense to keep them around. It’s unknown if Zynga will drop support for the games that were affected by the cuts.

It’s not exactly surprising to see the layoffs at this point considering how awful Zynga has performed this year. The company’s value has dropped considerably since its IPO and many top executives and creators have already left. The executives that are left are being investigated for insider trading after they sold most of their stock prior to the crash.

While the layoffs at Austin have been pretty much confirmed, we still don’t know the fate of Boston or Chicago. There’s a good chance they were also affected.

Many game industry folks (and Zynga haters) took to Twitter to discuss the rather convenient timing in which Zynga announced the lay offs:

Zynga Laid Off Over 100 Employees During The Apple Event
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  • Andrew

    Great. Now my Facebook wall is going to be covered in annoying job requests.

  • flit

    It’s really too bad that the PTB at Zynga can’t be bothered to pay any attention at all to their customers’ feedback. They deserve to tank.


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