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Zynga to cut 5 percent of its staff

8:20 PM, Oct 23, 2012   |    comments
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Zynga Inc. is eliminating games, studios and jobs as part of a broader cost-cutting strategy by the game company.

The maker of social media games such as "FarmVille" and "Texas HoldEm Poker" said Tuesday that it will cut about 5 percent of its full-time workforce. About 3,000 people worldwide work for Zynga. It is the company's first-ever round of layoffs.

Zynga also says it will get rid of 13 older games and reduce its investment in the game "The Ville." It will close its studio in Boston and may close studios in Japan and the U.K.

The company made the announcement a day ahead of its third-quarter earnings report. Analysts are expecting a loss for the period.

Zynga shares rose 10 cents, or 4.5 percent, to $2.30 in after-hours trading.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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