Tencent Fires First Time In Last Ten Years
The Chinese multinational company Tencent is going to be on their first firing drive after ten long years and planned to lay off 5,500 people together. As per the recent records, Tencent which is China’s most valued company reported 110, 715 employees at the end of June. There was a 4 percent decrease from March and the first staff reduction since 2014. After reporting that its quarterly revenue fell short of expectations, Tencent disclosed the net reduction.
Tencent counted among world’s toppest multimedia companies, Tencent Interactive Entertainment Group (IEG) that mainly focuses on publishing games is one of the global leading companies in the video game industry. Run on revenues, Tencent also provides the services of payment options, mobile games, e-commerce, web portals, smartphones, and music. In 2018, Tencent marked Asia's pioneer technology company to cross the market valuation of USD 500 billion. As of June 2022, Tencent lost its half of the market valve since its peak of business.
Due to the turbulent world economic situation, many IT companies are finding ways to lay off their employees in large numbers. Tencent is taking up the same path and firing 5,500 employees as it is facing customer crisis due to long lockdowns period and downturn in the real estate business.
As per the reports of The Financial Times, Tencent itself has been selling its own stakes in tech companies to JD.com and Singapore’s Sea. Steven Leung, Executive Director at Uob Kay Hian said “People are worried that the big holder will keep selling their stake and there is no timetable when their sale will end,”.According to the company’s latest filing, Prosus sold over 3.9 million of its shares in the six months through June, trimming holdings to about 2.765 billion shares.
