Zynga to lay off 5% of employees

Zynga Inc laid off 5 percent of its full-time workforce and shut its Boston office on Tuesday as it embarked on a sweeping cost-cutting campaign that may eventually see the “FarmVille” game creator close its Japanese and British studios as well.

The company, which is trying to arrest a steep decline in earnings as users gradually migrate onto mobile devices or rival games, plans to “sunset” 13 unspecified older titles, Chief Executive Mark Pincus said in a staff memo on Tuesday that was published on the company blog.

“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 wrote in his memo…

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via Zynga lays off 5% of its work force, ending 13 games – Bottom Line.