Chinese tech giant Tencent Holdings has started laying off employees in its cloud, gaming, and video streaming divisions.
Three of Tencent’s six business units—Platform and Content (PCG), which includes video and news platforms; Interactive Entertainment (IEG), which concentrates on games; and Cloud and Smart Industry Group (CSIG)—will be affecte. Several of his IEG employees would be let go, who claimed he learned of this last week.
Tencent declined to make a statement. The quantity of job losses was not known to Reuters. Government repression and COVID-zero restrictions that have slowed the country’s economy overall are still having an adverse effect on the country’s tech industry.
Tencent has already cut jobs earlier this year, along with rivals such as Alibaba Group Inc. and small Chinese tech companies such as Xiaohongshu. Tencent said in August that its employee count had fallen from 116,213 in March to 110,715 at the end of June.
The Shenzhen-based business wants to grow internationally in order to counteract China’s sluggish growth. Tencent has adjusted its M&A approach, concentrating mostly on acquiring control holdings in international gaming businesses. In recent weeks, hundreds of employees have also been let go by a number of US technological businesses, including Twitter, Intel Corp., and the parent company of Facebook, Meta Platforms.
When Tencent releases its third-quarter results on Wednesday, the analyst anticipates a flat or marginal decline. The management of Tencent has stated that it has shut down a number of non-core companies, including online education, e-commerce, and game streaming in order to save expenses.