Social gaming firm, Zynga, has revealed plans to lay off 520 jobs, about 18% of its global work force, as part of its cost-cutting efforts that would save it around $70m to $80m.
The latest move is the largest layoff in the six-year history of Zynga, would also be followed by closing down of the game maker’s studios in New York, Los Angeles and Dallas.
Zynga CEO Mark Pincus said that the company has ever expected to face this day, especially when so much of its culture has been about growth.
"But I think we all know this is necessary to move forward," Pincus said.
"The scale that served us so well in building and delivering the leading social-gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played."
Zynga is currently focusing on mobile, which would make mobile gaming truly social by offering people new, fun ways to meet, play and connect.
Since the past six months, Zynga has axed 18 gaming titles, in addition several executives have quit the company, which has reduced its market value by 70% since 2011.
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However, Zynga reported a profit of $4.1m during the first quarter of 2013, while anticipating net loss of between $26.5m and $36.5m during the second quarter.
