Zynga Is Shuttering Its Dallas Office

Categories: Biz, Technology

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In late 2010, the social gaming company Zynga was on a buying spree. Riding high on the success of FarmVille, the San Francisco-based startup was snatching up smaller rivals across the country, including Dallas' Bonfire Studios some three months after the firm released the not-at-all derivative We Farm.

But there's only so much digital farming Facebook users can do before it starts to seem like actual labor, and Zynga's fortunes have steadily faded over the past year and a half. After a much-ballyhooed initial public offering, the company's stock price peaked in March 2012 and then, starting with Facebook's IPO two months later, took a nosedive. The price has been hovering at about $3 per share for months, about a quarter of its 2012 peak.

Zynga responded today by slashing 520 jobs, reducing staff costs by $80 million, and closing offices in New York, L.A. and Dallas. All Things D explains the move in more detail:

The reason? Mobile -- a business Zynga must conquer, despite its currently smaller prospects for monetization compared to its Web business.

After a rocky IPO and trying to cope with rapid changes in its core businesses, Zynga now must refocus the company's flagship franchises and network on the shift to mobile and a narrowing of focus at the company.

In other parlance, this is a "right-sizing" of Zynga to reflect a more somber reality that these mobile businesses are not as large as its Web-based ones that rode the startup to glory on the explosive growth of social networks, primarily Facebook.

Zynga's fate remains to be seen. That of its Dallas employees is, unfortunately, quite clear.

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Facebook and Zynga stocks dwindling. IBM buys Dallas based cloud outfit Softlayer for guestimated 2B.


I gave up on these stupid things as they bombard you with a lot of crap I can do without. I like the model used by Godville. Minimal involvement, no ads or spamming with requests, updates and other crap to buy.


Wow, they had a Dallas office? I had no idea.

I stopped playing the usual Zynga games (The Ville, Farmville, Hidden Chronicles) because I was a casual gamer being spammed by objectives that required me to log in multiple times a day to complete. Limited-time quests are not fun when you work, go to school, and have kids. Plus I have no interest in paying to complete tasks. 

I had an epiphany one day when I realized that I was wasting hours of my life in an attempt to gain virtual items that meant nothing outside the game so I went cold turkey and haven't been back. I only play games that don't penalize me for playing 15-60 minutes at a time and then not coming back for a couple of weeks...love you Candy Crush Saga!


@jjmoreta they didn't have a Dallas office. it was in Allen.

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