Zynga reported results Wednesday that beat estimates and announced plans to restructure. About 18 percent of its global workforce will be laid off for planned savings of $100 million.
The social gaming company reported it had a first-quarter loss of 1 cent per share on bookings revenue of $167 million. Wall Street had expected 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 6 percent in extended-trading hours.
The layoffs will affect about 364 jobs.
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The company said the number of daily active users was down from a year earlier, but up from the fourth quarter. It also announced second-quarter guidance that was in line with analysts' expectations for a loss of 2 cents.
"Over the years we've seen that tighter, more nimble teams can drive faster innovation and deliver more player value," said CEO Mark Pincus in a release.
"This was a hard but necessary decision and I believe this plan puts us in the best long-term position for success."
The San Francisco-based company said it expects to launch between six and eight mobile games this year, "with a continued investment in our future pipeline for 2016 and beyond."
Pincus also said Zynga will leave sports games and instead focus on a narrower product lineup including the action and social casino areas.
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The company has been struggling for years with plummeting revenues as more gamers transition to smartphones. Three years ago the company was valued at $11 billion. Its stock market value now is $2.2 billion.
Zynga has been pouring money into mobile game development in an 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 company 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.
—CNBC's Dominic Chu contributed to this report.
Clarification: Zynga reported bookings revenue of $167 million for the first quarter. The nature of that figure wasn't specified in an earlier version of this article.