Zynga CEO Don Mattrick has let three executives go as part of his restructuring plan.
Zynga’s new CEO is making his first push to turn the struggling company around by simplifying its ranks of management and reorganizing its reporting structure.
Mattrick said in a memo to staff Chief Operations Officer David Ko, Chief People Officer Colleen McCreary and Chief Technology Officer Cadir Lee were leaving the company to pursue other interests.
“We are taking layers out of the executive rank to get senior leaders closer to important product initiatives,” Mattrick wrote. “With that in mind, I have asked the leaders to sharpen their focus and properly densify talent to resource teams.”
Zynga’s five-year reign as the leader of the social game market was brought to an end in June by King.com, the developer of the hyper popular Candy Crush Saga app according to AppData. Currently Zynga’s FarmVille 2 is the third most popular app on AppData’s leaderboard, behind Trip Advisor and King.com’s Candy Crush Saga.
In the reorganized Zynga, the company will be siloed into studios that work on a specific project such as FarmVille, Social Casino, and With Friends. The studio leader will report directly to Mattrick. Mattrick wrote in the memo to staff that he hopes this will be a more efficient structure.
Zynga’s biggest challenge will be to recapture the dominance it once had with FarmVille and its With Friends franchise. App development has low capital costs, so the next big social gaming hit might come from a giant developer like Zynga or King.com, or it may come from a startup run out of someone’s garage. Zynga has no particular competitive advantage in creating a new app, aside from its existing leverage in the marketplace.
Zynga’s shares opened the Thursday trading day at $2.97. Its shares have dropped by approximately 16 percent over the last month.