), a maker of social games, has lost its chief technical officer of
infrastructure Allan Leinwand, according to
reported that Leinwand has left Zynga to take up a similar position
at Service Now (NYSE:
), a provider of cloud-based services to automate enterprise
information technology operations.
The departure comes as yet another in a string of executive
departures this summer. Starting in June, Zynga announced a
restructuring program to make up for its earnings miss, which
included firing its chief operations officer John Schappert.
Continuing to bleed of talent, vice presidents Bill Mooney and
Brian Birtwistle had both also departed. That same week, Zynga also
lost its chief creative officer Mike Verdu, who left to found his
own startup. On top of these executive departures, Zynga has lost
four of its general managers, one of which went to rival
The pressure to depart is clear, and with the cost to acquire
talent in silicon valley currently, it's not something the social
game giant wants to endure. With share prices tumbling, increasing
pressure to deliver a blockbuster game, and a steady loss of its
startup atmosphere, co-founder Mark Pincus is under significant
pressure to provide incentive to stay. Through restructuring, the
company has attempted to regain its startup atmosphere, releasing
stock to employees in order to tempt them to stay financially.
Shares of Zynga have taken a beating since it IPOed at $10.00 in
January, with share prices falling over 70 percent.
Investor confidence in the social game maker has been shaken
since reports have shown a steady decline in its user base.
Analysts pin the decline on a significant decrease in desktop
) use, where the company's addictive social games are based. As
users increasingly access Facebook via smartphone and tablet,
Zynga's social games have been losing screen time at an alarming
The company is in serious need of a boost, which it hopes to
achieve through the sequel to its signature game: Farmville. Zynga
hopes Farmville 2's focus on nostalgia and relaxation will draw
Shares of Zynga traded down 0.72% Monday, around $2.86.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice.
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