OMGPOP, the studio behind hit mobile game Draw Something, has reportedly been closed by parent company Zynga, as part of a restructure that includes 520 redundancies, according to The Verge.
Zynga paid $180 million for OMGPOP a year ago but wrote off $95 million of this investment in October 2012. It is now believed to have shut the studio as part of efforts to save a further $70-$80 million.
Zynga is cutting 18 per cent of its global workforce, with offices in Los Angeles, Dallas and New York being closed. The New York office is where OMGPOP is based.
Dan Porter, Draw Something creator and former OMGPOP CEO, left the company in May, shortly after the launch of Draw Something 2.
Zynga’s revised outlook for the second quarter of the year is a net loss of between $28.5 million and $39 million. The company reaffirmed its second quarter revenue guidance of $225 million to $235 million.