Gothamist National Media, the hyperlocal news empire based in New York City, announced yesterday that their hyper-local site Austinist is officially closed.
“As an independent, bootstrapped media company, we have to run lean and mean,” Jake Dobkin, the founder and publisher of Gothamist, told Betabeat. “That means pruning the tree each year to keep it healthy and strong, and that’s what led to the Austinist decision.”
In response to questions about layoffs, Zynga emailed Betabeat an internal memo that CEO Marc Pincus sent out to staffers this afternoon. In the note, Mr. Pincus confirmed that the company cut approximately five percent of its full-time workforce today, including the shuttering of its Boston studio and mass layoffs at its Austin location.
Mr. Pincus also said that Zynga is proposing closures of its Japan and U.K. offices. In addition, the company will be sunsetting 13 of its games and reducing investment in TheVille, a Facebook game that’s facing a lawsuit from EA for looking a whole lot like a Sims game.
In the memo, Mr. Pincus wrote that he believes the cost-cutting measures will “improve our profitability and allow us to reinvest in great games and our Zynga network on web and mobile.”
The memo comes after a day of intense rumors about the flailing social gaming company filled the tech universe. Despite the fact that the news emerged during the attention-sapping Apple keynote, TechCrunch reported that the timing of the news had more to do with Zynga’s impending earnings call, scheduled for tomorrow, than with the Apple presentation.
the startup rundown
Social gaming company Zynga has endured a rough couple of months. After its acquisition of the NYC-based company OMGPOP–producers of the fad-friendly game Draw Something–Zynga has experienced a downward spiral. Earlier this month, it reported an estimated net loss of $90 million to $105 million for its third quarter, sending its already-low stock price into a tailspin. Now, The Next Web reports that the company has laid off 100 staffers from its Austin headquarters, and may even be shuttering its Boston office altogether.
HILL COUNTRY. Made in NY: Austin will celebrate New York based tech startups at South by Southwest on March 11 from 6 p.m. to 12 a.m. at the Fast Company Grill at Cedar Door in the Texas Capital. The event will be hosted by Gust, and the New York Tech Meetup and will be attended Read More