Zynga "consolidates", closes more studios

Zynga continues its efforts to streamline business in 2013, with the closure of studios in three states today. The publisher’s Baltimore, Maryland office has been closed completely, while offices in Texas and New York have been “consolidated”.

Studios in both downtown Austin and McKinney, Texas, have been closed, with workers now checking into offices in either Dallas or North Austin, while the Zynga NYC presence is being lumped together in the NYC mobile studio.

CityVille 2

An early look at CityVille 2

The Baltimore closure impacts on around 1% of Zynga‘s 3,000 employees, and about half of the 30 studio workers have accepted alternate positions within the company. David Ko, COO of Zynga, reports that everybody in Baltimore who requested a transfer was relocated, and the impact of the consolidation is “minimal”. This was the studio responsible for development of CityVille 2, before Chief Game Designer Brian Reynolds left in January.

Ko explains:

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 [Earnings Before Interest, Taxes, Depreciation, and Amortization]. 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.

The news follows some pretty hefty cuts at Zynga, which laid off 5% of its workforce in October, closing offices in North America and around the world. Earlier this month, the publisher axed three Facebook titles, none of which had been on the market for longer than a few months.

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