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Zynga to trim workforce strength; may outsource jobs to India

Last Updated: Wednesday, October 24, 2012 - 17:54

New York: US-based Zynga, better known for FarmVille and other popular games on Facebook, will trim its full-time workforce strength by five percent and may outsource some American jobs to India, reports have said.

Embarking on cost-cutting measures, the Nasdaq-listed entity would also be ending 13 older games besides reducing investment in 'The Ville'.

"... We will unfortunately be parting ways with approximately five percent of our full time workforce," Zynga founder and Chief Executive Officer Mark Pincus said in a memo to the employees.

"This is the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors," Pincus said on yesterday.

Going by estimates, Zynga has nearly 3,000 employees globally and reports on online news portals said some of the jobs, including those related to 'The Ville' games might be moved to India, where the company recently started its operations.

According to the website 'TheWrap.Com', Zynga is outsourcing operations for the two games -- 'The Ville' and 'Bingo' -- to India.

Another portal 'TechCrunch.Com' reported that 'The Ville' is being transitioned to the company's offices in India ? "the way Zynga sunsets a lot of its less popular games".

In his staff memo, Pincus said the company is "sunsetting" 13 older games and apart from significantly reducing investment in 'The Ville'.

Zynga would also be closing down its Boston studio besides proposing closures of Japan and UK studios.

"Additionally, we are reducing staffing levels in our Austin studio. All of these represent terrific entrepreneurial teams, which make this decision so difficult.

"In addition to these studios, we are also making a small number of partner team reductions," Pincus noted.

He said these reductions, along with efforts to implement more stringent budget and resource allocation around new games and partner projects, would improve profitability.

Going by Zynga's website, there are more than 10 vacant positions at its Bangalore office, including software engineer, senior product manager and art director. The company is also looking for people in the US and China, among other countries.

Shares of the company declined over five percent to close at USD 2.20 on the Nasdaq on Tuesday.


First Published: Wednesday, October 24, 2012 - 17:54
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