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Chinese Gaming Giant Tencent Initiates Another Round Of Layoffs

Benzinga · 11/15/2022 11:10
  • Tencent Holding Ltd (OTC:TCEHY) has begun a new round of job cuts targeted at its video streaming, gaming, and cloud businesses, Reuters reports.
  • The layoffs affected three out of Tencent's six business divisions, namely, platform and content (PCG), which comprises its video and news platforms, its gaming-focused interactive entertainment department (IEG), and cloud and smart industries group (CSIG).
  • Tencent informed some staff in IEG regarding their layoff last week.
  • Also Read: Alibaba Tops China's Cloud Market List; Scores Brownie Points With Overseas Expansion
  • Tencent already cut jobs earlier this year, alongside peers, including Alibaba Group Holding Limited (NYSE:BABA) and smaller Chinese tech companies like Xiaohongshu. 
  • In August, Tencent disclosed its employee numbers fell to 110,715 by the end of June from 116,213 in March.
  • Tencent eyed global expansion to offset slowing growth in China.
  • China's technology sector continues to battle the repercussions of regulatory crackdowns and zero-COVID measures that have slowed the broader economy.
  • Tencent voiced its focus on cutting costs and shutting down non-core businesses in certain areas, including online education, e-commerce, and game live-streaming.
  • Price Action: TCEHY shares traded 10.9% higher at $37.06 on the last check Tuesday.