Zynga laying off 5% of workforce and cutting spending on 'The Ville'

Zynga laying off 5% of workforce and cutting spending on 'The Ville'

 Zynga Inc. ZNGA -5.17% confirmed on Tuesday afternoon that it is closing one studio and laying off about 5% of its total workforce in a cost-cutting move. In an e-mail to Zynga employees, CEO Mark Pincus said the company was closing its Boston studio and "proposing closures of the Zynga Japan and UK studios," along with cuts to its studio in Austin, Texas. The move was somewhat expected, as Zynga had said it would reduce its costs in an earnings pre-announcement on Oct. 4, in which the company cited underperformance of some of its social and mobile games. On Tuesday, Pincus said the company was "sunsetting" 13 older games and "significantly reducing our investment in The Ville," which launched in late June. Zynga shares were trading up about 3.6% in Tuesday's after-hours session