Zynga Cutting Jobs, Shuttering Offices In NY, LA, Dallas
SAN FRANCISCO (CBS/AP) -- Online game maker Zynga says it is cutting 520 jobs, about 18 percent of its workforce, and closing some offices.
The San Francisco company is shedding costs in the face of a decline in the number of users of its games, which include "Farmville" and "Words With Friends."
Zynga Inc. says the cuts announced Monday will save it between $70 million and $80 million a year and are expected to be largely complete by August. It expects a wider loss in its second quarter than earlier anticipated as a result of the moves.
As part of the restructuring, Zynga offices in Los Angeles, New York and Dallas would be closed.
The cuts come on the heels of earlier efforts to reduce overhead as demand for its games on the social-networking site Facebook fades.
Zynga's stock fell more than 10 percent after Monday's announcement.
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