Massive restructure forces Zynga to lay off more than 500 employees

Shawn Knight

Posts: 13,056   +130
Staff member
In what is probably a surprise to very few people at this point, fledgling social games provider Zynga is laying off nearly 20 percent of their workforce as part of a massive restructuring effort. Do the math and that comes...

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Posts: 116   +53
Well, if you were to do the math on that figure, about 150k each =P... I assume they are including overhead costs in that figure, so probably about half of that.


Posts: 3,214   +1,467
So 520 people laid off will save them $80 000 000?

My Math head isn't on today and my Calculator app is broken (don't go there) how much was each employee earning?!

Earning is different than what Zynga was spending on them. Zynga was spending $153,846, which is actually pretty reasonable. Where I work they give us a 'Total Rewards' statement that shows what our company pays toward my 401(k), healthcare, salary, retirement, and Social Security costs, and my salary is about 70% of the total. So based on that ratio, these Zynga employees were making around $107,000 on average. Zynga HQ is in San Francisco, which is a very expensive place to live, so it's a good salary, but probably not out of the ordinary for a talented San Fran computer developer/designer with some experience.


Posts: 611   +94
Human resource is a major part of the overhead, but it's not the whole overhead. if you take other accounts into factor, ie supplies, additional space, electricity, rent you'll have the whole picture. part of Amazon's move to purchased their entire office space as oppose to renting it annually is to save on future overhead and convert it to fixed asset. moves such as this that amazon and Zynga did were prime example of corporate accounting at work. basically somebody is doing their job. and yes, that means someone else is loosing it. in this day and age is all about maximize efficiency. any fat in the operation you seize to exist in the market place. today's per work force capita typically performs at three times level of 30 years ago, that's just my personal opinion, which is not too far off.


Posts: 3,064   +784
I'm afraid to try any zynga game, their poker game always runs on my phone even if I kill the task.


Posts: 460   +59
If the gaming revolution is trivial novelties, gaming itself is in very big trouble.

Thankfully the PlayStation 4 is almost here to see off that possibility.


Look at that...a small gaming company we used to love but gone corporate and now cannot sustain itself. Sad for people who bought stocks on high.