Since the end of 2021, many business groups operated by Shenzhen-based tech giant Tencent have begun to undergo personnel reductions, according to 36Kr on Tuesday. The company’s CSIG (Cloud & Smart Industries Group) and PCG (Platform & Content Group) are seeing major layoffs, while the IEG (Interactive Entertainment Group) is either reducing a small number of employees or hasn’t yet initiated layoffs. As of 8:00 a.m. on Tuesday, Tencent has not responded to this news.
Tencent‘s CSIG is one of the most affected groups. Rumors alleging that the layoff ratio of this business group was as high as “20%-25%” have circulated in public recently. Three Tencent CSIG employees confirmed the layoffs, while two expressed agreement with the above estimated layoff ratio, even adding that the quantity of layoffs is still increasing.
Tencent PCG, including an online video business unit, Tencent News, and the Technology “middle office,” is reducing personnel in different proportions. Many PCG employees have seen nearly 10% layoffs within their departments, and the number reportedly continues to increase.
On the other hand, while the Chinese gaming industry faces a tough regulatory environment, 36Kr learned that Tencent IEG may terminate some unimportant projects, but will not involve core businesses. However, other small business groups of Tencent, including CDG (Corporate Development Group), TEG (Technology Engineering Group) and WXG (WeiXin Group), all have no more than 10,000 employees and haven’t started any layoffs so far.
Previously, a group of Chinese web users posted on Maimai, a popular domestic workplace networking site, saying that the ratio of current Tencent layoffs will be as high as 30%-50%. A Tencent employee told 36Kr: “The number of Tencent large-scale layoffs is obviously exaggerated. In fact, the organizational optimization focuses on factors such as the improvement of business efficiency and the performance of employees, and is not linked to the age of employees. The reason why there is much misinformation may be due to the downward of the current industry and the shrinking stock prices of internet companies. These all lead to people’s pessimistic expectations.”