Bad news for the already struggling Zynga. Zynga is laying off 18 percent of its employees (a total of 520 people) and will close its offices in New York, Dallas and Los Angeles, according to a report from AllThingsD.
Zynga, the creator of Facebook phenomenon Farmville, enjoyed huge success for a period of time. The company called these layoffs "substantial cost reductions" in a press release Monday. "Net loss is projected to be in the range of $39 million to $28.5 million, which is updated to reflect the impact of the actions noted above," the press release states.
There is no mention of the office closures, but a self-described "senior UI designer" at Zynga tweeted the following on Monday:
Layoffs - #zynga LA closing today... Around 55 people. :-/
— Junkyard Sam (@JunkyardSam) June 3, 2013
"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," Zynga CEO Mark Pincus said in a letter to employees.
Pincus writes that the employees will be taken care of: "We're offering generous severance packages that reflect our appreciation for all of their work and we hope this will provide a foundation as they pursue their next professional steps."
In October of 2012, the company laid off more than 100 employees from the Zynga Bingo and TheVille teams.
This is a developing story.