Zynga, the gaming company famous for Words With Friends, Farmville and Bubble Safari, just to mention a few, announced that it would be consolidating offices in Texas and closing their office in Baltimore.
Currently Zynga has offices in McKinney, Dallas and two in Austin. Plans are to close the McKinney offices and move them to Dallas, and close the downtown Austin location and move those assets to the North Austin location.
David Ko, Zynga’s Chief Operations Officer (COO) posted the following on the company’s blog on Monday:
As all of you know, we’ve talked a lot about 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 US 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 offices and relocating those teams near-by to our existing Dallas and North Austin offices. And, we will be consolidating our NYC 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 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.
No timetable has been announced on when these moves will take place. It is reported that up to 30 people will be relocated from McKinney to Dallas.
This is the second time Zynga has been forced to reduce its workforce. The company closed offices in Boston and Tokyo, laying off 5% of its workforce at the time. Zynga stated that the closures allowed the social gaming developer to save $25 million in the last quarter of 2012.