Wednesday, July 6, 2022

In the cold, it is rumored that Tencent will lay off more employees in the second half of the year

internet companieslayoffThe tide hasn’t stopped, and mainland Internet giant Tencent may continue to reduce manpower this year. According to 36氪, Tencent layoffs will continue in the second half of this year. Tencent’s organizational optimization will be done by group, but the pace of each business group is different. Among the major business groups, the Cloud and Smart Industry Business Group (CSIG) and the Platform and Content Business Group (PCG) were the hardest-hit sectors for layoffs in the first half of the year due to their large employee base. In particular, the overall layoff ratio of PCG can exceed 10%. In the second half of the year, personnel optimization will continue on a first half basis. However, Tencent declined to comment.

The report said that Interactive Entertainment Group (IEG), Corporate Development Group (CDG), Technology Engineering Group (TEG) andWeChatIn the Business Group (WXG), some business teams have completed 10% or more of personnel optimization between March and June, and the IEG’s recent actions are particularly evident. In the second half of the year, the above mentioned business groups will continue to lay off employees based on the first half of the year. Among them, the proportion of layoffs in various sub-divisions of PCG will reach 40%. -50%, and some businesses will face overall layoffs. Some teams from the remaining business groups are also going to adapt.

The report quoted people familiar with the matter as saying that PCG’s layoffs in the first half of the year saved about 3% of its total cost. However, officials were not satisfied with the implementation of layoffs in the first half of the year and believed that the expected cost optimization target was not achieved. “In the first half of the year, the main layoffs were grassroots employees, even new graduates, and inactive middle and grassroots managers and older employees went short.” The report noted that layoffs in the second half of the year would be more let down by management.

It is worth mentioning that on Corporate WeChat, all employees can publicly view the total number of employees in each business group and their dynamic changes. Recently, Tencent has hidden the total number of employees on corporate WeChat.

Tencent’s performance has not improved.According to Tencent’s first quarter 2022 financial report, adjusted netBenefit(non-IFRS) fell 23% from the same period last year, and net profit fell for three consecutive quarters. Regarding the poor performance, Tencent founder Ma Huateng said after the financial report was released that he would “reduce costs and increase efficiencies”, adding, “During the challenging first quarter of 2022, we implemented cost control measures and Some of the non-profitable core business will help us in getting a more optimized cost structure in future.”


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