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Tencent Lets Go Entire Staff At Fanbyte After Failing To Secure Gaming License, Stock Falls

Published 16/09/2022, 12:27
Updated 16/09/2022, 13:10
© Reuters.  Tencent Lets Go Entire Staff At Fanbyte After Failing To Secure Gaming License, Stock Falls

  • Leading gaming company Tencent (HK:0700) Holding Ltd (OTC: TCEHY) laid off nearly all of the editorial staff at Fanbyte, an online gaming publication, TechCrunch reports.
  • The layoffs included the site's editor-in-chief, head of media, features editor, social editor, news editor, graphic designer, podcast producer, and several writers.
  • Fanbyte employees were laid off slowly, one by one, over several hours.
  • After posting its first revenue decline last quarter, Tencent laid off about 5% of its workforce, affecting 5,000 people.
  • The layoffs followed despite the assurance of government support towards the tech industry to boost the fallen economy.
  • Tencent failed to win gaming license approval since the regulators lifted the suspension. China suspended game approvals last August before resuming them in April.
  • Recently, Tencent shareholders added $7.6 billion in shares to Hong Kong's clearing and settlement system, spurring speculation of a selloff by its biggest shareholder, Naspers Ltd (OTC: NAPRF).
  • As of the June quarter, Alibaba (NYSE:BABA) Group Holding Limited (NYSE: BABA) let go of 9,241 employees, representing 3.6% of its workforce, totaling 254,941 at the end of March.
  • Price Action: Tencent shares fell 2.27% in Hong Kong on Friday.

Read the original article on Benzinga

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