Zynga reports earnings beat, plans to lay off 18%

Zynga office

Zynga reported an earnings beat on Wednesday and laid out plans to restructure the social gaming company. About 18 percent of the global workforce will be laid off for planned savings of $100 million.

The company reported a loss of 1 cent per share on revenue of $167 million. Wall Street had expected the company to deliver a loss of 2 cents per share on $148 million in bookings revenue, according to consensus estimates from Thomson Reuters.

Shares of Zynga were up about 9 percent in extended trading hours.

The layoffs will affect about 364 jobs.

Users were down from a year ago, but were up once again from the fourth-quarter of 2014. Zynga also announced second-quarter guidance that was in line with analysts' expectations of a loss of 2 cents.

"Zynga remains focused on our mission of connecting the world through games, which is even more relevant and possible today," said CEO Mark Pincus in a press release.

"Our execution is focused in three areas - our products, where we're backing proven teams against the most valuable game categories; our people, to foster creative entrepreneurs; and our plan in order to fund our future with focus and simplicity."

Read More Zynga and Mark Pincus face declining social games sales

Zynga has been struggling for years with plummeting revenues as more gamers transition to smartphones. Three years ago the company was valued at $11 billion. It's stock market value now is $2.2 billion.

The company has been pouring money into mobile game development in a desperate effort to remain relevant. However, revenue for the well-known FarmVille franchise fell from $9 million a month in mid-2013 to a little more than $2 million a month today, according to SuperData.

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The social game developer is creator of popular gaming franchises including FarmVille and Words With Friends.

Shares of San Francisco-based Zynga have plunged more than 30 percent over the past 12 months to $2.55.

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