Zynga reveals further job cuts

<p>Zynga is cutting hundreds more jobs.</p>

The share price of Zynga is down today (June 4th) after the company announced further job cuts are on the way.

It was also revealed by the firm that losses are going to be larger than initially anticipated.

Zynga will be cutting more than 500 positions, which represents almost a fifth (18 per cent) of its total workforce. The losses come only a few months after hundreds of jobs were lost at the company, which makes popular social games such as Farmville.

"You can't save your way to prosperity," said Michael Pachter, an analyst with Wedbush Securities, who added: "The market is telling you that it's not confident that revenues are going to grow.''

Mark Pincus, chief executive of Zynga, said in a blog post that the job losses will allow the firm to "develop these breakthrough new social experiences".

Zynga's share price is down by more than 12 per cent today on the back of the news it is cutting over 500 jobs and expects losses to be even worse than predicted.

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