Social gaming company Zynga is set to lay off more than 500 people, with shares falling 64 per cent since it went public in December 2011.
The company behind games including CityVille, FarmVille and Draw Something is also closing its offices in New York, Dallas and Los Angeles, reports the Guardian.
The cuts make up around 18 per cent of Zynga’s current workforce.
In an email to staff Mark Pincus, founder and chief executive of Zynga, said: “None of us ever expected to face a day like today, especially when so much of our culture has been about growth. But I think we all know this is necessary to move forward.
“The scale that served us so well in building and delivering the leading social gaming service on the web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played.”
Despite its games proving hugely popular, especially through Facebook, Zynga has struggled to monetise them and is expecting to make a net loss of US$39 million to US$28.5 million in the second quarter of 2013.
Those who are laid off can expect to receive “generous severance packages”.
