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

Reuters Showcase

'Windows 10'

'Windows 10'

Microsoft names next operating system 'Windows 10'  Full Article 

Split from eBay

Split from eBay

Analysis - PayPal spawn have advanced where PayPal stood still   Full Article 

iPhone 6 in China

iPhone 6 in China

With iPhone 6 approved in China, Apple suppliers ready for demand.  Full Article 

Netflix Deal

Netflix Deal

Netflix 'Crouching Tiger' deal incurs wrath of theater chains.  Full Article 

Oracle Convention

Oracle Convention

Larry Ellison still the top draw at Oracle's mega-convention  Full Article 

Tax Rules

Tax Rules

EU says Ireland swapped Apple tax deal for jobs.  Full Article 

Music Services

Music Services

Google searches for right note in online music business.  Full Article 

E-Commerce Dispute

E-Commerce Dispute

Amazon, Disney appear close to settling dispute over movies - WSJ.  Full Article 

Reuters India Mobile

Reuters India Mobile

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