Zynga is laying off 18 percent of its workforce--some 520 employees--in an effort to save money. As part of this layoff, Zynga will be refocusing on mobile. The move is estimated to save Zynga around $80 million in staff costs. Offices in New York, Los Angeles, and Dallas will be closed as well.
These additional infrastructure savings will boost that $80 million in savings figure, likely by quite a bit. Offices in San Francisco, Beijing, Bangalore, and various other small office locations will remain open and staffed. Zynga has confirmed that all of the staff affected by this will be laid off by August.
Zynga has struggled to adapt to the massive changes to its core revenue source. Started as a web game company, the onslaught of smartphones and mobile gaming has damaged their bottom line.