Hard-Hit Zynga Laying Off 18% of Workers

Hard times have hit Zynga, maker of hit social games like Mafia Wars and FarmVille—as well as numerous other now-closed duds. The company, which was blindsided by the steep rise in mobile gaming and corresponding desktop decline, is laying off 18% of its workforce, around 520 people, All Things Digital reports. The company will also close its offices in New York, Los Angeles, and Dallas as part of its cost-cutting drive.

"None of us ever expected to face a day like today, especially when so much of our culture has been about growth," founder and CEO Mark Pincus wrote in a note to employees, promising generous severance packages and saying the cost-cutting is a necessary part of developing "breakthrough new social experiences." Zynga's share price dived 12% to $2.99 yesterday, a full 70% below its December 2011 IPO price, the Wall Street Journal reports. (More Zynga stories.)