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They're very simply continuing to turn the Titanic around. They were once dominant on Facebook, so much so that their stock followed Facebook's through financial deals both parties had signed. They're now trying to become relevant on the mobile market, the only one that is going well for the types of games they know how to make. They had one of two choices in order to do that: the long route is trying to shift everything internally and acquire the knowledge over time, the short route is buying a well established player who can easily transfer all knowledge much faster.

 

Given they had the money, they went for the short route, especially with all the pressure they're getting from their investors. The move to cut the workforce is a simple cost-cutting move to instill confidence in their shareholders. Read, the shareholders asked for these cuts to be made so they would back the acquisition of Natural Motion.

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