Major studio and game closures at Zynga

Social gaming giant Zynga is facing major losses this week.

We reported yesterday on the rumor that the company was closing studios in Austin, Boston, and Chicago. New information confirms that Boston, Austin, Japan, and UK branches are affected.

"We are closing the Zynga Boston studio and proposing closures of the Zynga Japan and UK studios," said chief executive officer Mark Pincus in an internal statement to the Zynga team. "Additionally, we are reducing staffing levels in our Austin studio. All of these represent terrific entrepreneurial teams, which make this decision so difficult."

Zynga is shutting down 13 games and reducing investment in The Ville. These changes affect five percent of the company's full-time workforce, said Pincus.

"Zynga made social gaming and play a worldwide phenomenon, and we remain the industry leader," he said. "Our success has come from our dedication to a simple and powerful proposition — that play is not just something people do to pass time, it's a core need for every person and culture."

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[Game Informer]