Zynga's Quick Rise May Bring about Its Demise

With its IPO looming, Zynga could be facing a talent drain, because of its work culture. The IPO, should be Zynga's high-point, but might end up being its low-point, as employees cash out the door. At this point, money becomes less of a bargaining chip.
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Amplify’d from dealbook.nytimes.com

In dozens of e-mails to a companywide list, frustrated workers complained about the long hours and stressful deadline periods. The quarterly staff survey solicited 1,600 responses, with plenty of criticism, including one person who said he planned to cash out and leave after the initial public offering.

But that culture, which has been at the root of Zynga’s success, could become a serious liability, warn several former senior employees who agreed to speak on the condition of anonymity because of fear of reprisals.

“Zynga should be an example of entrepreneurship at its best,” said Roger McNamee, a co-founder of the venture capital firm Elevation Partners. “Instead it’s going to be a Harvard Business School case study on founder overreach — this will be a cautionary tale.”

“We’ve learned that when companies treat talent as a commodity, the consequences are severe,” said Ms. Toledano of Electronic Arts. “It takes years to repair a reputation.” Read more at dealbook.nytimes.com

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