Zynga is a popular name in the world of online social games. Till now it has captured almost 240 million active users every month covering almost over 175 countries. They have gained much success in the launching of their live social gaming services in the internet, mobile platforms and even in the world famous social net working sites. It has brought a golden opportunity for the world wide Face Book users to avail the free opportunity of playing live online social games.
The sudden announcement of employment curtailment by Zynga has created a great alarm for the share holders. As a consequence of within few hours of trading, the value of the shares straight away fell down to 12 % to $2.99. After the twice halting at the NASDAQ stock exchange in the afternoon further made the stock fell as much as 15%.
Zynga has revealed the annual pre-tax savings from $70 million to $80 million as a result of layoff announcement. This has also resulted in a loss of between $39 million and $28.5 million in the second quarter earnings of the company. The earlier reports of Anthony Ha speak of a different scenario which reveals that by this announcement of mass layoffs, Zynga is trying to tighten the operation of the company.
Zynga is expecting a big worldwide success of the hit release of the mobile gaming start ups like Super cell and King.com. Recently, Zynga is also planning to focus only on the proper tuning of each and every existing franchisee for their individual recognition as big brands in the market. This is the only reason it has decided to restrict the launch of the number of online games as well as franchisees.
The current market scenarios of the stock prices of Zynga shows that Zynga still needs to work harder to regain the confidence of their investors once again. It needs to reconstruct its company plans and policies for gaining the same position in the stock exchange market. This is not the first time that they are reducing their costs by curtailing the employment, previously the same wok has been done in the last October. Previously, they showed the cause of the weakness of the game “The Ville” for this employment curtailment.
The CEO of Zynga, Mark Pincus has remarked 2013 as the transition year for facing the tough challenge of their game launching in the world of the most popular social network, Face Book. Though it has evidenced a lot of rush of the mobile and internet users but still it is very tough to predict that how long this positive impact is going to last.