Zynga Shuts Down 'Draw Something' Creator OMGPOP After Spending $200M to Acquire It

Last year, social game-maker Zynga acquired OMGPOP for roughly $200 million. OMGPOP is the development house behind the once-incredibly popular Draw Something.

Today, Zynga is shutting OMGPOP down as part of another round of layoffs at the company. Zynga has laid off 18 percent of its staff -- 520 employees -- reports AllThingsD.
The move today will affect every part of the San Francisco social gaming company and cut $80 million in staff costs. Zynga currently has about 2,900 workers.

But the action will also include the closing of its offices in New York, Los Angeles and Dallas, as well as the slashing of other major infrastructure costs, adding to a total expense reduction that is likely to be much larger.
Zynga has killed some 18 games in recent months and has been spending more resources on a transition to mobile games.

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20 months ago
Too bad the guys at Zynga didn't learn how to draw a bubble.

Rating: 11 Votes
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20 months ago
Finding out you were laid off via Facebook - ouch. :rolleyes:
Rating: 8 Votes
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20 months ago
I think everybody except for Zynga saw this coming way before they even acquired OMGPOP
Rating: 7 Votes
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20 months ago
The word is SAD. Now Draw Something!



Filed under: who cares.
Rating: 5 Votes
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20 months ago
Yes, people began seeing the light and realizing paying to plant virtual strawberries was a waste of money. They began losing players well over a year ago and now Zynga is in bad shape. Buying Draw Something was a huge mistake. Bet they won't be doing something like that ever again.
Rating: 4 Votes
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20 months ago
Some day, and that day may never come, buying a company that begins with "OMG" will be considered a crazy thing to do.



Michael
Rating: 3 Votes
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20 months ago
2900 employees after layoffs? Hard to even imagine what that many people were working on considering the product they put out. It seemed like a big advantage of working on social/mobile gaming is that it required less manpower to create the content compared with giant console titles.
Rating: 2 Votes
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20 months ago
I'll be happy when Zynga isn't a player in the games industry anymore. So many bad practices and ripped-off games, undelivered promises and a crappy attitude. Their comeuppance is long overdue.
Rating: 2 Votes
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20 months ago
Good riddance! DIE ZYNGA, DIE!!!!
Everybody hates zynga!!
Rating: 2 Votes
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20 months ago
Zynga's new motto: WithDraw Something!
Rating: 2 Votes
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