More Zynga layoffs, predicts Pachter

Analyst Michael Pachter has predicted that Zynga will announce another round of layoffs, as it's expected that new CEO Don Mattrick will next week outline his strategy to return the company to profitability.

"Zynga has had a rocky 2013 so far, but we believe that CEO Don Mattrick has the skills and experience to make necessary changes, and if he streamlines the company's cost structure and stabilizes the core business, we think that there is potential for shares to appreciate above our target," Pachter said. "We have modeled 2013 conservatively, but believe the flexibility inherent in Zynga's business model makes a return to profitability (as early as 2014) far more likely than a period of sustained losses."

Zynga laid off over 500 employees in June, and the remaining staff may have to brace themselves for more.

Thanks, GI.biz