It didn’t take long for Zynga to step up its game following its recent downturn on the Wall Street floor.
The San Francisco-based social games maker announced that it will be consolidating its efforts in Texas and New York to make way for more profitable changes. The drawbacks represent 1 percent of the company’s 3,000 employes. As a result, Zynga saw a 10 percent increase in its stock.
“In an effort to leverage resources as we focus on creating franchises and driving profitability, Zynga has made changes to four of our U.S. offices,” Zynga Chief Operating Officer David Ko told FoxBusiness.com. “While these decisions are always difficult, these steps will enable us to focus our resources on the most significant growth opportunities.”
It’s been no secret that Zynga is struggling in the economic climate. In October, the company laid off a staggering 5 percent of its workforce, shutting down its office in Boston. The company also announced that it would close offices in Japan and the U.K. The moves were to enable the company to move some money behind more successful franchises like WordsWithFriends and FarmVille. Zynga recently withdrew its funding for CityVille 2, which was gaining only modest reviews.
While many believe the stock uptick was due to the company’s consolidation efforts, some are pointing to the recent passage of an interstate online poker law in Nevada, which will legally give Zynga the ability to pair with online poker sites. Nevada Governor Brian Sandoval signed the new legislation “to allow Nevada-based companies to host interactive gambling for residents of other states,” per Foxbusiness.com.
The news couldn’t have come at a better time for Zynga, which had been struggling to maintain its stranglehold on social gaming. Recently, its stock reached a high of $3.69, up more than 50 percent since the beginning of this year.
It won’t be the first deal that Zynga will make with an online poker competitor. Last year, Zynga struck a deal with a U.K. online gambling operator called Bwin.Party to enable casino games like slots and blackjack to link with Zynga-based games which could, in turn, run in the U.S.