Bangalore: Zynga, the provider of social gaming services which was founded in 2007 has announced its biggest round of layoffs, raising doubts about its own recovery. It is reported that the social gaming provider is letting off 18 percent of its 2900 working staff this year.  

According to AllThingsD’s Kara Swisher, “Sources said the reason for the more substantive cuts now, after earlier ones in the fall, is because the decline of its Web business which has been more drastic than anticipated, while the rise of its mobile business slower than needed.”

Zynga’s offices at Dallas, New York and Los Angles (where only 55 people work) will be shut down along with 520 jobs in an attempt to save the company around $ 80 million.

In an internal memo regarding layoffs, MarK Pincus, the co-founder and CEO wrote,  “The scale that served us so well in building and delivering the leading 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.”

In the previous year, Zynga had laid off 5 percent of its staff and hoped that 2013 would see a change in the company. However, it had announced the closure of various offices and workforce that would result in ‘an estimated $70 million to $ 80 million’ in annual pre-tax cash expense savings. Besides this, Zynga also plans on recording an estimated $15 million reversal of stock based expenditure, due to workforce reduction, in the second quarter of this year.

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