Zynga CEO Mark Pincus revealed better-than-expected first-quarter results Tuesday along with a restructuring plan that will result in 364 employees being laid off. Reuters/Stephen Lam

As his first order of business back at Zynga, Mark Pincus announced an 18 percent workforce reduction that will result in 364 employees being cut, the company CEO announced Wednesday following the release of the video game firm's better-than-expected first-quarter earnings.

The restructuring includes job cuts across the company's studios and includes contractors. The company said it also plans to lower costs by cutting spending on outside and centralized services. Altogether, Zynga expects the restructuring to result in savings of $100 million annually. The San Francisco firm said job cuts will be complete by the fourth quarter of this year, while the full restructuring should be finished by the third quarter of 2016.

"Over the years, we've seen that tighter, more nimble teams can drive faster innovation and deliver more player value," Pincus said in a statement. "This was a hard but necessary decision and I believe this plan puts us in the best long-term position for success."

Pincus delivered the news alongside the company's first-quarter results, his first since returning as CEO to the company he co-founded in 2007. For the period ending in March, Zynga posted revenue of $183 million with a 1 cent loss per share, beating analysts' estimates of $147.72 in revenue with a 2 cent loss per share.

"Our Q1 results reflect the progress we have made in our transition to mobile, which now represents 63% of total bookings -- up 84% year over year," Pincus said.