Zynga continues to scale back its global operations. It is in the middle of consolidating its operations and cutting back areas that are losing money. Zynga laid off 5 percent of its workforce in October and was in the middle of deciding whether to pull out of Japan or to stay in the region.
Kenji Matsubara, the Zynga Japan CEO, announced today on Facebook that Zynga will be closing its Japan office, according to TechCrunch. Zynga Japan will close its doors on January 31, 2013.
"Zynga Japan will be shut down at the end of January, that Matsubara thanks users for playing his company’s games, and that service for popular card battle game Ayakashi will be continued," said Matsubara.
Zynga acquired the Tokyo-based Unoh Games in 2010 and was backed by Softbank by investing $150 million in the company that same year. Competition has grown in the past couple of years which has caused a decline in revenue for Zynga.