The story of Zynga has been the cause of many a large investment into Facebook gaming, but it seems the bubble is bursting.
Gameplanet notes the full quote from Zynga CEO Mark Pincus, in which he confirms 520 layoffs and the closure of Zynga's New York, Los Angeles, Austin and Dallas offices.
As recently as a year ago, the Wall Street Journal was reporting the alarming news that Facebook social gaming could just be a 'fad' rather than a market in which to create a new sustainable business model, noting the surprising 12.03% decrease in Zynga's share price in Q2 of 2012.
Ironically, the fatigue for the social gaming can largely be attributed to companies like Zynga, which have been accused of cynically creating game mechanics designed to be superficially addictive but ultimately feedback-loop systems aimed at coaxing in-game purchases out of players.
The jobs lost represent almost one fifth of Zynga's total workforce.