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Zynga posts $52m loss

Job cut news followed by disappointing figures

Zynga has announced a quarterly loss of more than $52m, just one day after the closure of its Boston studio and layoffs affecting hundreds.

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Overall the social games firm lost $160m during January to September this year, though it did post revenue figures for the quarter (over $316m) that exceeded expectations.

Yesterday CEO Mark Pincus confirmed job cuts affecting approximately five per cent of the global giant's full-time workforce, the Boston studio closure, the 'sunsetting' of 13 games and the "proposed" closures of UK and Japan-based studios, all as part of an effort to "streamline our operations, focus our resources on our most strategic opportunities".

He said in a statement today: "While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming.

"We're implementing a number of steps to drive long-term growth and profitability. The successful launches of FarmVille 2 and ChefVille in the third quarter demonstrate that when we develop great games, our large player audience engages.

"It's more clear than ever that along with search, shop, and share, play is a fundamental pillar of the Internet, and Zynga continues to be the leader."

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