U.S. markets open in 1 hour 5 minutes
  • S&P Futures

    4,257.25
    -23.75 (-0.55%)
     
  • Dow Futures

    33,543.00
    -175.00 (-0.52%)
     
  • Nasdaq Futures

    13,527.25
    -50.50 (-0.37%)
     
  • Russell 2000 Futures

    2,002.30
    -14.60 (-0.72%)
     
  • Crude Oil

    87.35
    -4.74 (-5.15%)
     
  • Gold

    1,790.20
    -25.30 (-1.39%)
     
  • Silver

    20.10
    -0.59 (-2.87%)
     
  • EUR/USD

    1.0204
    -0.0053 (-0.52%)
     
  • 10-Yr Bond

    2.8490
    0.0000 (0.00%)
     
  • Vix

    21.03
    +0.83 (+4.11%)
     
  • GBP/USD

    1.2095
    -0.0044 (-0.36%)
     
  • USD/JPY

    132.7400
    -0.7400 (-0.55%)
     
  • BTC-USD

    24,107.37
    -413.97 (-1.69%)
     
  • CMC Crypto 200

    572.00
    +0.71 (+0.13%)
     
  • FTSE 100

    7,471.97
    -28.92 (-0.39%)
     
  • Nikkei 225

    28,871.78
    +324.80 (+1.14%)
     

Tencent, Other Chinese Companies Follow Western Counterparts In Laying off Staff As Economic Slowdown Weighs

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Chinese tech giants like Tencent Holding Ltd (OTC: TCEHY) and TikTok parent ByteDance Ltd implemented fresh layoffs affecting thousands of employees in their latest round of cost-cutting, the Wall Street Journal reports.

  • The job cuts added on to the tens of thousands of employees already axed by Chinese internet companies since late 2021 after the domestic regulatory crackdown crushed the sector.

  • Latest layoffs have extended to the companies' core businesses following China's stringent Covid lockdown as opposed to the previous ones, which focused on restructuring loss-making industries and non-core segments.

  • Tencent looks to cut employees across different business groups through the end of this year, extending to some core businesses, and will likely hit some senior managers.

  • Tencent saw fewer title approvals from the government and chased games with big budgets.

  • ByteDance's latest layoffs hit its videogame business, once a promising growth area, and 3,000 additional people from its education unit.

  • Chinese video-streaming platform Bilibili Inc (NASDAQ: BILI) slashed staff from some core business segments like videogame and live-streaming.

  • The layoffs followed despite the assurance of government support towards the tech industry to boost the country's fallen economy.

  • "Macroeconomic risk has overtaken regulatory risk," said an analyst focused on Chinese internet companies. "As growth slows, companies will have to rethink their appropriate business structure," he said.

  • In the U.S., big tech companies, including Twitter Inc (NYSE: TWTR), Microsoft Corp (NASDAQ: MSFT), and Tesla Inc (NASDAQ: TSLA), have begun reducing employees or slowing down hiring due to economic uncertainties.

  • The Chinese tech giants continue for other new business lines that see growth potential, including the metaverse.

  • Price Action: TCEHY shares traded lower by 2.31% at $45.33 on the last check Thursday

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.