The ax has begun to fall at troubled game developer Zynga again, as the company confirmed that it will lay off 18 percent of its workforce, lowering its pretax annualized cash expenses by $70 million to $80 million, and AllThingsD reported that Zynga is shuttering its offices in New York, Los Angeles, and Dallas.
The struggles continue for game developer Zynga, as the company confirmed that it will shutter its operations in Japan, just two months after laying off more than 100 employees in Austin and closing its Boston studio.
The acquisitions of Radian6 in 2010 and Buddy Media in June are starting to catch up with Salesforce.com, as TechCrunch reported that the company amended its 8-K filing with the Securities and Exchange Commission to show $20 million in net losses for Buddy Media during the first six months of 2012, which reportedly led to the layoffs of fewer than 100 people from Radian6 and other areas of its Salesforce Marketing Cloud business.
Zynga’s days as the top dog in the Facebook gaming world appear to be fading. As challengers such as Kixeye and King.com emerge, taking up more of a share in the Facebook gaming ecosystem, Zynga’s financial stake has decreased. Sister site Inside Social Games reported Tuesday that Zynga has laid off more than 100 employees from its Austin office and plans to close its Boston studio.