This is the most painful part of an overall cost reduction plan that also includes significant cuts in spending on data hosting, advertising and outside services, primarily contractors.

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The core of the Republican Medicare cost-reduction bill is Medicare Plus, a plan offering seniors a range of managed care plans, or HMO's, from which to choose.

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The decision was part of an "overall cost reduction plan", Mr Pincus wrote.

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In an email to staff in October 2012, Zynga founder Mark Pincus said the company would close its Boston studio and consider closing studios in the UK and Japan as part of an "overall cost reduction plan".

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The buyout plan will account for much of the cost reduction.

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