Well, I heard a nasty rumor today that Zynga, the mega-giant social games developer, laid off a massive 18% of its total workforce. That’s a lot of people for a company who filed for over a billion dollars in its IPO offering and had an IPO value of $9 billion. Seems their stock has been dropping like a drunk cheerleader’s panties and they had to drop some weight to stay afloat.
Oh, they also closed down an entire company.
I’ve been saying for a long time that Zynga wasn’t going to make it. The problem is that they have made the same game 50 times and people are getting tired of it. There’s not a shred of creativity in that entire company so they bought some other small companies and now that they can’t seem to get their stock prices back up, they’re having to bail themselves out.
That company they closed down? OMGPOP, the makers of Draw Something. Zynga picked them up around a year ago for a whopping $200 million and it seems that as of today they’ve closed the doors on the developer’s offices and laid everyone off… with no warning! Former OMGPOP chief Ali Nicolas tweeted:
“I learned via Facebook I was laid off today and @OMGPOP office is closed. Thanks @zynga for again reminding me how not to operate a business”
So the giant Zynga doesn’t even have the decency to let its people know, face to face, that they’ve been shit-canned. Wow. But, I suppose that since the company’s stock has dropped to just over a quarter of its original worth, it’s no surprise they’re having to clean house. That’s what hubris gets you, no?
And now, my top 5 reasons why Zynga sucks:
5) They’ve made the same exact game, over and over, with different graphics and try to market it as innovative.
4) Creativity fail. Every game is a “something-ville”.
3) “Harass all of your friends until they join in order to continue!”
2) Microtransaction after microtransaction after microtransaction.
1) They don’t even have the balls to fire people in person? That’s a new low. I look forward to seeing you off the market.
Good luck to the people who used to work for OMGPOP. I hope things work out for them!