18% of game developer Zynga's mobile and social staff gets the pink slip
While Draw Something was downloaded 50 million times in 50 days, and 3000 pictures were created each second, users started getting bored of the game. By May, just two months after the purchase, the numbers started to go in reverse culminating in October with the layoffs and the shuttering of Zynga's Boston office.
Now, after a restructuring and a foray into online gambling, Zynga is passing out pink slips again. Even the April launch of Draw Something 2 for iOS has not been able to help Zynga turn things around and on Monday it announced that it is laying off 18% of its mobile and social staff. That works out to 520 people leaving the company. Zynga now expects to report a net loss of between $28.5 and $39 million for the quarter after originally estimating that it would lose $27.6 million in the period. Stockholders dumped the stock on Monday with shares dropping 12% to close at $2.99.
source: Zynga via TUAW