Zynga Lays Off 15 Percent Of Workforce, Buys NaturalMotion

Zynga announced significant layoffs today, as well as the acquisition of British software company NaturalMotion.

The Zynga workforce has been reduced by 15 percent, with 314 employees being let go. This reduces Zynga’s numbers from roughly 2,100 employees to 1,800, give or take.

Zynga CEO Don Mattrick‘s “CEO Update” about the layoffs:

“…When we reviewed the support areas and looked at what was an appropriate size to have agile, dedicated teams, we decided to redeploy and right size against our best opportunities for growth. The final part of that effort is today we are implementing a 15% workforce and cost reduction plan which impacts 314 employees. We don’t take these decisions lightly but we believe these actions will allow us to create a clearer, faster path to win.”

Zynga also reported a smaller-than-expected loss for Q4 2013 — a $25.2 million loss on $147 million in revenue.

Along with the layoffs and earnings report, Zynga announced that it is acquiring NaturalMotion, the British software company behind the popular Euphoria engine. Euphoria is used in Grand Theft Auto 5, GTA 4, Red Dead Redemption, Max Payne 3, Star Wars: The Force Unleashed 1 and 2, and other titles. NaturalMotion was wholly bought for $527 million, allowing Zynga access to Euphoria, as well as a host of other middleware products. The company is also a game developer, with titles like CSR Racing and Clumsy Ninja available on Google Play and iOS.

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