UPDATE: IGN has obtained a memo from Zynga CEO Mark Pincus that confirms the company has laid off 5% of its workforce. In addition, the Boston studio will be closed and 13 of its older titles will be discontinued.
Read the full memo at IGN. [Disclosure: I freelance for IGN]
And the bad news for Zynga continues…
In addition to lawsuits, underperforming games and a mass exodus of talent, word from Gamasutra has it that Zynga has laid off over 100 people from its Austin studio, developer of The Ville. You may recall that Electronic Arts is currently suing Zynga over the similarities between that game and its own The Sims Social.
A Zynga Austin employee told Joystiq that while the The Ville and Zynga Bingo teams are no more, the Slots team remains, leaving about 70 people left at the Austin studio.
Unconfirmed reports also peg Zynga’s Boston and Chicago studios as having been shut down.
-Reporting from San Diego, GamePolitics Contributing Editor Andrew Eisen