What’s new: Tencent Holdings is planning job cuts affecting two of its six major business divisions, though the size of the workforce reduction will be smaller than expected, multiple sources from the company told Caixin.
The tech giant will cut jobs mainly in its Cloud & Smart Industries Business Group (CSIG) and the Platform and Content Group (PCG), reflecting slowing growth momentum of related businesses, the sources said. The company didn’t comment on the matter.
A Tencent staffer said the job cuts are a normal internal optimization. “In a company with more than 100,000 employees like Tencent, changes involving thousands of positions every year are normal,” the person said.
The background: Word circulated in recent days that Tencent was planning to terminate as many as 30% of its employees, sparking concerns over its business amid growing headwinds facing China’s tech sector.
Tencent’s cloud and content divisions showed weaker growth in 2021 after rapid expansions, promoting personnel reshuffles, a company source said.
Both established in 2018, the CSIG runs businesses including cloud, map, smart retail and other services targeting interactions between users and industries, while PCG covers QQ messaging services, Tencent's App Store and browsers, as well as content platforms including news, videos, sports, live broadcasts, animes and movies.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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