Zynga to lay off 15 pct of employees as sales sink

Jan 30, 2014 by The Associated Press

Zynga says it is laying off 314 employees, about 15 percent of its workforce, as the game maker's fourth-quarter sales plummet.

The San Francisco company said Thursday that sales in the October-December quarter plunged 43 percent to $176.4 million, worse than the $183.5 million expected by analysts polled by FactSet.

The company's loss came to $25.2 million, or 3 cents per share. That's down from a loss of $48.6 million, or 6 cents per share, in the same months the year before.

The cutbacks are expected to generate savings of $33 million to $35 million this year.

Zynga also says it's buying NaturalMotion, creator of mobile games CSR Racing and Clumsy Ninja, for $527 million.

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