Zynga announced yesterday that it was laying off about 18% of its work staff, or about 520 employees, which is bad news for any company. But it turns out that this set of folks includes most of the crew of OMGPOP, the company Zynga acquired for its uber popular app Draw Something last year. It was only last March that Zynga picked up OMGPOP for $200 million after Draw Something became a big hit, and while the app did both grow and spawn a sequel under Zynga’s oversight, OMGPOP’s CEO Dan Porter left the company just a few months ago, and now most of the original staff is out of a job.
Or at least on to the next one — one former Zynga staffer says to TechCrunch that most of the team members “had new jobs lined up by the time they left the building anyway.” It’s true that the OMGPOP acquisition was extremely public, and while Draw Something was always popular, it wasn’t hard to see that the audience lost a lot of engagement after that initial acquisition.
I don’t think this is the death knell for Zynga just yet — the company has been cutting titles, but still has successful games running, and it’s working on more to come. But this is definitely a wakeup call that the once huge social and mobile juggernaut needs to do things a bit differently in the future.
Zynga closes OMGPOP, the creators of Draw Something originally appeared on TUAW – The Unofficial Apple Weblog on Tue, 04 Jun 2013 17:00:00 EST. Please see our terms for use of feeds.