Struggling games maker Zynga is taking an axe to its workforce again, this time cutting 15 percent of its employees, the company said. Zynga made its announcement as part of its fourth quarter earnings report, which revealed a 31.8 percent drop in annual revenue, to $873 million, along with a narrower loss of $37 million.
Zynga plans to cut 314 employees and take other cost-cutting measures, such as lowering the amount it spends on its data center infrastructure. Last year, the company eliminated 18 percent of its workforce and closed some office locations.
Meanwhile, Zynga announced that it has acquired NaturalMotion, a leading mobile game and technology developer, to expand its creative firepower. The purchase price was approximately $527 million in cash.
In a statement, CEO Don Mattrick said, “Over the last seven months, our teams have been working with a sense of urgency. We finished 2013 in a strong position and expect 2014 to be a growth year. We believe that (the first quarter) will be a solid foundation for that growth and we expect substantial improvements for the remainder of the year.”
When CEOs give a forecast, most understand that they need to deliver on those projections. Investors sure took note, pushing the stock up more than 17 percent in after-hours trading, to $4.19 a share.