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Tencent reportedly begins new round of layoffs

November 16, 2022 9:05 am

Tencent has begun a new round of layoffs in corporate and technology jobs starting as soon as this week, the Reuters reported on Monday, citing people with knowledge of the matter.

Tencent’s cuts will reportedly focus on three out of Tencent’s six business divisions - platform and content (PCG), which manage its video and news platforms, its gaming-focused interactive entertainment department (IEG) and cloud and smart industries group (CSIG).

Explaining the rationale behind decision making, executives at Tencent said the company cut costs to ride through global recession, Tencent has downsized non-core businesses in certain areas, including online education, e-commerce and game live-streaming.

Chinese media reported that Alibaba and Tencent would together cut tens of thousands of jobs this year in one of their biggest rounds of layoffs as they tried to deal with a declining revenue.

As of 30 June this year, Tencent had about 110,715 full-time and part-time employees, down from 116,213 in March.

The Shenzhen-based company is eyeing global expansion to offset slowing growth in China. Reuters reported last month Tencent is resetting its M&A strategy to focus more on buying majority stakes mainly in overseas gaming companies.

Last week, Facebook-parent Meta Platforms said it would cut more than 11,000 jobs, or 13% of its workforce, to cut costs. Twitter has announced it is cutting half of its 7,500 employees.

Amazon is also planning to layoff about 10,000 employees mainly on the e-commerce giant’s devices unit, which houses voice-assistant Alexa, as well as its retail division and human resources.