Zynga cuts 60pc of Irish staff in global shake-up despite rise in profits
The Irish arm of online games firm Zynga has cut its workforce here by 60pc as part of a global restructuring of the business.
The cuts are revealed in new accounts filed by the US-owned Zynga Ireland that show that the firm enjoyed more than a four-fold pre-tax profit increase to $6.48m (€5.8m) last year.
Revenues decreased by 26pc from $355.7m to $263.7m in the 12 months to the end of December last.
However, the accounts disclose that in a post balance sheet event, Zynga Inc announced a cost reduction plan in May of this year with job cuts totalling 297 worldwide, or 18pc of the workforce.
However, proportionally, Zynga's Irish operation has been hit much harder with its Dublin base losing 22 people, or 60pc of its workforce.
According to the directors' report, "there is a decline in revenues driven by a global decrease in sales year over year. The decrease in revenue is mainly due to a decrease in user-pay bookings as well as revenues from certain games decreasing."
The main factor behind the increased profit last year was investment income received of $3.48m.
Zynga is a leading provider of social game services and more than one billion people have played one on their games, including Farmville.
The company develops, markets and operates hosted online social games played over the internet and on social networking sites and mobile platforms, earning revenue primarily from the sale of virtual goods to the players of its online games.
The directors said the gross profit of $144m at Zynga Ireland represented 54.6pc of revenues in 2014 compared to 42.4pc in 2013 "reflecting an effort by Zynga to reduce its costs structure".
Established in 2007 in San Francisco, Zynga went public in December 2011 at a share price of $10 and this has since reduced by more than two-thirds to $2.42 with a current market capitalization of $2.28bn.
Staff costs last year reduced from $3m to $2.73m with the numbers employed at 38.