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In six months, gamesmaker Zynga has seen its stock price go from $12 to $2.Internally, the company is in near chaos.
High-profile executives, like the one who managed Zynga’s Poker team, keep quiting.
Employees, we’re told, are leaving the company because their managers say layoffs are coming.
Others are hearing rumours that their groups are being shopped.
One Zynga executive emailed us yesterday to accuse CEO Mark Pincus of misleading investors about the real root of the company’s problems.
The problem is that Zynga is in a hits-driven business and it hasn’t produced a big hit in a long time.
One analyst says Pincus has 6 months to turn the company around. From the outside, the task looks nearly impossible.
Zynga was built through acquisitions and a hiring spree that added thousands of people in a matter of months.
A patchwork organisation like that can work when times are good, but evidence is mounting that it will fall apart when stressed.