Mark Pincus is stepping down from his role as CEO and being replaced with the former head of Microsoft’s entertainment division, Don Mattrick, according to Bloomberg. Several sources familiar with the situation told Bloomberg that the deal could be announced as early as today, with Mr. Mattrick officially beginning the appointment on July 8th.
Mr. Pincus will serve as chairman and chief product officer. Over the last few months, he’s struggled to help usher the gaming company he founded in 2007 into an era dominated by mobile technologies. Last month, Zynga shuttered its New York office and laid off 520 employees, which amounted for about 18 percent of its staff.
In a tell-all on Reddit, one fired employee described Zynga’s business strategy as “terrible” and emphasized that its inability to adjust to shifting gaming trends has crippled its ability to grow. Meanwhile, Zynga stock is up 32 cents since news broke that Mr. Pincus could be replaced.
Update: Zynga has confirmed the hiring to AllThingsD’s Kara Swisher, who writes that the board approved the move last week.