Zapak is not planning to shut down its Bangalore office, COO Rohit Sharma told MediaNama. A recent blog post in Pluggd.in (a blog by a Yahoo employee), had claimed yesterday that “Zapak has decided to shut down it’s Bangalore office and has fired close to 40 employees.”

We contacted Sharma, who told us that Zapak had an engineering center in Bangalore with around 30 people in all, of which 16 people were in engineering. However, since some of the development work was taking place in Mumbai and some in Bangalore, it was difficult for the company to manage the two: product managers had to travel frequently between Mumbai and Bangalore. In order to consolidate development in Mumbai, the company asked most of the development team to move to Mumbai. Around 5-6 people are moving, while others have left.

Zapak maintains that they will still have around 15 people in their Bangalore office and and are not shutting it down. The southern operations of their Gameplex business operates out of Bangalore, and they are looking to hire sales and marketing staff.