Jobs

Zynga Cuts More than 500 Jobs, Shares Halted

zynga-logo
courtesy of Zynga
Shares of Zynga Inc. (NASDAQ: ZNGA) were halted for five minutes this afternoon as the company announced a layoff of about 520 employees that it said would be completed by August. Zynga, a leading maker of social media games, expects to realize annualized pre-tax savings of $70 to $80 million as a result.

The company will record a charge of $24 to $26 million in its second fiscal quarter and $2 to $5 million in the third quarter. Zynga also estimates a reversal of $15 million in stock-based compensation expenses in the second quarter.

Zynga also updated its outlook, now projecting a net loss of $28.5 to $39 million. The company re-affirmed its second quarter outlook for revenues in the range of $225 to $235 million and an adjusted EPS loss of $0.03 to $0.04 ($0.03 to $0.05 loss on a GAAP basis) and bookings of $180 to $190 million. The consensus estimate calls for an EPS loss of $0.03.

Shares are trading up about 0.3% at $3.41 in a 52-week range of $2.09 to $6.36

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.