The Zynga is taking a different approach to boost its share values and profit. The social gaming provider recently announced 18 percent staff cut as an attempt to cost cutting. This has triggered 4.2 percent growth in the share values of California based interactive entertainment company. The growth amounts $2.72 for each share. Mark Pincus, Chief Executive Officer, Zynga informed that the company plans to cut 384 employees by the end of the current financial year.
The job cut is going to cost company somewhere between $18 million to $22 million during the second quarter. But in a long term perspective, this cut is going to save $45 million annually. The company is also planning to divert its services to Amazon internet and save another $55 million. The management is also exploring other ways of cost cutting. The CEO informed the press that company is trying to hard in terms of cost cutting and the management will focus of most popular services of the company such as casino games. After Don Mattrick’s exit from the Zynga, Mr. Pincus recently returned to Zynga as a CEO.
The company was headed by former Microsoft Xbox head before him. Experts have rated Zynga Inc’s share as a sale. They have cited the reasons like large impact of weaknesses on the company strengths. Decreasing net income, low equity returns, cold cash flow and bad history of performance have been pulling the company back from its success. As compared to other giants in the gaming and software space company has underperformed.