Tencent Dismisses 5,500 Employees: Do you want to Know What Happened | Reason Behind This… Here It Is!! Tencent is the world’s largest video game vendor, as well as one of the most financially valuable companies.Tencent has fired approximately 5,500 employees as a result of its failure to achieve anticipated outcomes in the most recent quarter. A Bloomberg report states.
Tencent, a leading provider of technology and entertainment, has announced layoffs for the first time in more than ten years. This choice was made as a result of missed revenue projections for the current quarter. After falling short of estimates in the previous quarter, Tencent fired roughly 5,500 workers. At the end of June, the business employed 1, 10,715 employees, according to a Bloomberg article.
Nevertheless, as a cost-cutting measure, China’s biggest technology company has also stopped hiring for the first time in ten years. A number of employees at other leading software firms, including Google, have recently been let go as part of organisational reorganisation efforts aimed at easing financial pressures. Alibaba, a different Chinese internet business, recently let go of close to 10,000 employees as part of cost-cutting measures due to the slowdown in the economy.
After reporting revenue of $19.8 billion in the June quarter, down 3% and the first decrease since going public, Chinese company Tencent sacked 5,500 workers.
According to South China Morning Post, the country’s biggest video game and social media company cut over 5,500 jobs in the second quarter due to the weakening economy.
According to the firm, Tencent has reduced its staff for the first time since 2014, bringing the total to 110,715 by the end of June from 116,213 in March.
Pony Ma Huateng, founder and CEO of Tencent, said: “During the second quarter, we actively divested non-core businesses, reduced our marketing budget, and trimmed operating expenses, enabling us to sequentially raise our non-IFRS earnings, despite adverse sales conditions. The period’s net income was 18 billion yuan, which was below analysts’ expectations of 25 billion yuan and down 56% from a year earlier.
Additionally, there have been rumours that Tencent was considering selling all or a portion of its 17% interest in Meituan, one of the biggest meal delivery services in China.
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