Singapore’s primary Chinese language newspaper, Lianhe Zaobao, recently reported that, in the second half of this year, Chinese Internet giant Tencent will continue to lay off staff. All business groups will reduce their staff by at least 10 percent and will start laying off more staff from the management levels. In the first half of this year, Tencent “optimized” the personnel of each business group. In the second half of the year, the whole company will continue to lay off employees on the same basis as in the first half of the year. The proportion of layoffs in the different sub-divisions of the Platform and Content Business Group will even reach 40 to 50 percent. A few business groups will face discontinuation. Tencent’s core business groups, including the WeChat Group and the Gaming Group were not touched much in the first half. However, in this upcoming new round, 10 percent or more will also see layoffs. Tencent is currently at a low point in its performance. According to Tencent’s financial report for the first quarter of this year, Tencent’s adjusted net profit fell by 23 percent year-over-year and its net profit has declined for three consecutive quarters.
Source: Lianhe Zaobao, June 23, 2022