Zynga’s Outlook Tumbles as Stocks Test Lows

The headlines have not been kind to Zynga this week. With shares of the company in sustained freefall, Zynga recently saw its stock reach a new all-time low of just $2.66.

And just when you thought things couldn’t get worse… yesterday, Zynga slashed its revenue projections for the remainder of the fiscal year.

Mark Pincus, however, doesn’t want his employees freaking out (at least, not more than they already are). The CEO sent out a conciliatory yet upbeat letter to his troops, rallying them not to lose hope.

Unfortunately, as All Things D, points out, there’s a line in the memo issued Thursday that could give some cause for concern.

“We’re addressing these near-term challenges by targeted cost reductions and focusing our new game pipeline to reflect our strategic priorities,” Pincus said to employees.

That could mean taking resources away from some of the Ville-style games that were once its most popular. That includes one of the company’s recent titles, The Ville, the underperformance of which was first chalked up to being launched late in Zynga’s last earnings quarter.

For now, Zynga won’t comment further or offer clarification. But major cuts or cutbacks are now anticipated.