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.

Explore further: Comcast gains video subs in 4Q

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Zynga's 2Q losses narrow as company slashes costs

Jul 26, 2013

(AP)—Zynga narrowed its second-quarter losses as the troubled company laid off workers and trimmed other expenses to help offset its difficulty coming up with compelling games to play on smartphones.

Zynga to report 3Q net loss, take charge

Oct 04, 2012

(AP)—Zynga expects a loss for the third quarter and says its preliminary results reflect weak demand for some games. It's also taking a charge related to its acquisition of OMGPop, a mobile game maker.

Pandora posts in-line 1Q loss, upbeat sales

May 23, 2013

(AP)—Internet radio company Pandora reported higher-than-expected revenue in the latest quarter, with losses in line with analysts' forecasts, as the number of subscribers who pay for ad-free listening rose above 2.5 million.

Comcast gains video subs in 4Q

Jan 28, 2014

Comcast added 43,000 video subscribers in the fourth quarter—the first quarterly gain in six and a half years—as uptake of its X1 set-top box helped it retain customers and boost video-on-demand spending.

AT&T posts 4Q profit, higher revenue

Jan 28, 2014

AT&T is posting stronger-than-expected earnings for the final quarter of 2013, helped by higher revenue from mobile and Internet service subscribers.

Zynga posts 4Q net loss on IPO-related stock costs

Feb 14, 2012

(AP) -- Online game maker Zynga Inc. reported a net loss in the last three months of 2011, weighed by hefty stock-compensation expenses and other costs in its first quarter as a public company.

Recommended for you

Ticketfly buying WillCall for on-premise data

17 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0