The cutbacks continue at struggling game developer Zynga, as Chief Operations Officer David Ko announced in a post on the company’s blog that it will close its studio in Baltimore and consolidate its offices in Texas and New York.
The latest news follows the shuttering of the developer’s operations in Japan last December, and its layoffs of more than 100 employees in Austin, Texas, and shutdown of its Boston studio last October.
Ko wrote on the Zynga blog:
As all of you know, we’ve talked a lot about the fact that one of our key strategies for 2013 is driving long term profitability. With that mindset, we are finding ways to improve our business that position us better for our future success. Today we have an update about some office changes for some of our U.S. locations.
In an effort to leverage resources as we focus on creating franchises and driving profitability, we are consolidating three of our offices. We are closing the McKinney, Texas, and downtown Austin, Texas, offices and relocating those teams nearby to our existing Dallas and North Austin offices. And, we will be consolidating our New York City offices to move staff to our NYC mobile studio.
Today’s changes also include the decision to close the Baltimore studio. Whenever we make changes like this, we have to make some tough decisions around products, teams, and people. We were able to relocate everyone in the Baltimore office who requested a transfer, and the overall impact of the consolidations on our team is minimal.
These changes will further enable us to focus our resources on our most strategic opportunities. We’re already working to execute on leveraging franchises to build the largest game network and be profitable on an adjusted EBITDA (earnings before interest, taxes, debt, and amortization) basis. We still have a lot of work to do, but I’m confident that we’re on the right path to deliver on the potential of Zynga.
Readers: Can Zynga stop the bleeding?