Jun 4 2013, 7:01am CDT | by Sumayah Aamir
Sometimes what hurts you can heal as well. This seems to be the case with Zynga, the video game producer, which is to downsize over 500 of its employees in an unprecedented move, the first of its kind in its entire history. According to an official press release, the real reason why this action was taken was to slash costs since the company was not doing well in the market. Furthermore, 18% of its workers are to be given the pink slip. The troubled times the firm is going through will be mitigated only through this harsh experience of economic cleansing. A number of stores are to be closed down although the exact locations were not disclosed. The main venues may be New York, Dallas and Los Angeles. The amount saved after the restructuring is over may reach $80 million. This will be accomplished within the time span of three months. As for the losses incurred along the way, they ought to be covered via some tough decisions that need implementation. It was a sad time for Zynga since it was originally a progressive organization. With this downturn in fate there is a need for lean thinking.
Actually what worked in the past is obsolete in today’s futuristic world. The CEO of Zynga, Mark Pincus spoke of how the online social gaming environment had given way to the mobile phone reality for which Zynga was unprepared. The shock to the system has been considerable and for now the prospects don’t look rosy. The adaptability was too little too late. Having suffered heavy losses, Zynga is planning on retaining its customers. Yet the demand is dwindling.
Zynga wants to offer fun-filled hours of gaming pleasure to its user base. For this it will need some serious soul-searching in order to find out what exactly went wrong and where. The goal before the gaming giant is to mimic other top contenders on the scene such as Supercell and King.com. The company has shed its working staff from time to time. Whether any future dumping will take place is a moot point. The current situation at least is not one of confidence but caution. Zynga has to pull itself up by its bootstraps and think positive. This is so as to insure a brighter future both for itself and its employees.
Source: Business Insider
Source: Just Jared
Source: Orlando Business Journal
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