There were mass layoffs at Zynga in Austin today, according to a former employee of the company, who said the announcement came during today's widely-publicized Apple iPad Mini announcement.

The company allegedly laid off more than 100 employees and shut down The Ville, a neighborhood-based reality simulation game that was released in June, a former employee told The Verge in an email. The company also laid off the entire team for a new unreleased game; both games "are now done," the ex-employee said.

The Ville had a strong debut, but its popularity dropped off drastically earlier this month. The game was also the target of a lawsuit filed in August by Electronic Arts, which alleged that Zynga had copied its game The Sims Social. Zynga counter-sued in September.

The news comes a day before Zynga is slated to announce its third quarter earnings results, which are projected to be another disappointment for the company's slumping stock.

We reached out to Zynga and were told the company will have a statement soon. We are still reporting this story and will update with a confirmation.

Update: A second source has confirmed there were layoffs in Austin, Chicago, and Boston today.

Update 2: Here's the memo from Zynga's CEO Mark Pincus: