Zynga attacks costs, to slash headcount by 15 percent

SAN FRANCISCO Fri Jan 31, 2014 3:49am IST

The corporate logo of Zynga Inc, the social network game development company, is shown at its headquarters in San Francisco, California April 26, 2012. REUTERS/Robert Galbraith/Files

The corporate logo of Zynga Inc, the social network game development company, is shown at its headquarters in San Francisco, California April 26, 2012.

Credit: Reuters/Robert Galbraith/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Video game maker Zynga Inc (ZNGA.O) said on Thursday it would slash its workforce by 15 percent and posted a narrower-than expected quarterly loss, sending shares up 20 percent.

The San Francisco-based game company, known for its "Farmville" game, is expected to cut about 314 jobs as part of an expanded cost savings plan, the company said.

Shares in Zynga were halted briefly after its announcement and then rose to $4.26 after closing at $3.56 on the Nasdaq on Thursday.

Zynga's core business continued to deteriorate, but not as quickly Wall Street feared. For the quarter ended Dec 31, Zynga's revenue fell to $176.4 million from $311.16 million a year prior, compared to analysts' average estimate of $141.1 million, according to Thomson Reuters I/B/E/S.

Excluding certain items, it reported a net loss per share of 3 cents, slightly better than Wall Street view of a 4-cent loss per share, according to Thomson Reuters I/B/E/S.

The company forecast first-quarter revenue in the range of $155 million to $165 million.

Zynga said that it acquired mobile game developer NaturalMotion, which has created games like "Clumsy Ninja" for Apple mobile devices, for $527 million in cash and stock in a bid to grow its mobile game revenue.

The game publisher, once among the hottest tech companies with rapid revenue growth from popular Facebook-based games, was caught off guard as the games industry saw a boom in mobile games. The company has renewed its focus on transitioning to smartphones and tablet titles, the increasingly preferred format for casual gamers.

(Reporting by Malathi Nayak; Editing by Andre Grenon, Nick Zieminski and Meredith Mazzilli)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Wipro Results

People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro sees rosier end to year as U.S. clients spend

India's third-biggest software services firm Wipro Ltd , under pressure to improve lacklustre sales growth, said it saw a rosier end to the year as more confident U.S. clients increase spending.  Full Article 

Reuters Showcase

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Apple-1 Auction

Apple-1 Auction

Early Apple computer sells for $905,000 at auction.  Full Article 

No More Nokia

No More Nokia

Microsoft looks set to drop Nokia name from smartphones.  Full Article 

User Data Security

User Data Security

Apple CEO discusses security with top Chinese official amid hacking claims - Xinhua.  Full Article 

Patent Wars

Patent Wars

Big Tech winning battle with 'patent trolls'.  Full Article 

Record Season

Record Season

FedEx expects record peak volume of 22.6 million packages on Dec. 15.  Full Article 

Yahoo Earnings

Yahoo Earnings

Yahoo ekes out Q3 revenue gain despite display ad weakness.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage