Zynga’s woes hit Ireland hard, with a far higher ratio of job losses here (60pc) than the global average (18pc) experienced in its European base.
Zynga’s latest accounts reveal that 22 people in the Dublin operation have been let go, representing around three-fifths of the workforce here.
The company figures, revealed in the Irish Independent, show overall revenues dropping by $100m. Ireland was hit hard due to the company’s international arm struggling badly. The Irish Examiner reported that, in accounts filed by the firm, losses jumped from $5.14m to $86.7m.
According to the directors’ report, “there is a decline in revenues driven by a global decrease in sales year over year. The decrease in revenue is mainly due to a decrease in user-pay bookings as well as revenues from certain games decreasing”.
Around 15 months ago Zynga was among a group of companies predicted to disappear this year.
Tech and entertainment brands BlackBerry, Time Warner Cable, Zynga, DirecTV and Shutterfly were listed in 24/7 Wall St’s predictions.
Zynga’s financial battles have thrown up mixed results in the past year or so with revenues declining and daily active users of their games dropping markedly.
The company’s directors’ report said that “in May 2015, Zynga Inc announced a cost reduction plan with a workforce reduction of about 366 employees or about 18pc of its global workforce, and the implementation of additional cost reduction measures, including lowering its spend on data centre infrastructure”.
These cuts are, quite clearly, painful.
Main image via Shutterstock
Get your early bird tickets now!