Vostu layoffs follow Zynga settlement

A South American social game maker recently hit by a copyright settlement with Zynga has cut staff.

Vostu, a Brazillian company of close to 600 employees as of December, has 3.5 million active users on Facebook, and is doing relatively well on Google’s orkut as well, reports Gamasutra.

The social game maker was caught up in a stream of copycat allegations made by its competitor Zynga, and has had to pay a settlement fee, and make changes to four of its titles.

Zynga itself has seen similar accusations from several studios, but no settlement is in sight.