Zynga Lays Off Over 100 Employees, Closes Studios

The unveiling of the iPad Mini is just what Facebook game creator Zynga needed to divert attention away from what they have done. Reports claim that Zynga has streamlined its studios in Boston, Austin, and Chicago, laying off many (if not all) employees working in it.

A Zynga employee in Austin has confirmed to Joystiq that at least two of his studio’s teams were let go (particulary The Ville and Zynga Bingo teams), while The Verge reports that over 100 employees were laid off in Austin.

Meanwhile, TechCrunch is reporting that Zynga’s studio in Boston, which was apparently working on an unannounced title, was shut down completely. Zynga’s headquarters in San Francisco remains unfazed.

We can safely say that Zynga is trying to plug the hemorrhage it has been getting from its ongoing lawsuit against game publishing colossus Electronic Arts, claiming that Zynga’s The Ville game looks way to similar to EA’s The Sim Social. Zynga is also dealing with declining stock value since its IPO, while its $200 million acquisition of Draw Something developer OMGPOP remains an inside joke in Wall Street and Silicon Valley.

Not a single word has been uttered from any Zynga official regarding the issue, as the company is set to release its quarterly earnings Wednesday and it is expected to be on the red again.

Source: Justin Maxwell, via Engadget

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