Chinese internet technology firm ByteDance is restructuring the video games side of its business.
The company, the parent of Marvel Snap publisher Nuverse, called this a “difficult” decision to make.
“We regularly review our businesses and make adjustments to centre on long-term strategic growth areas,” a spokesman for the ByteDance said in a statement shared with Reuters. “Following a recent review, we’ve made the difficult decision to restructure our gaming business.”
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While ByteDance did not go into further detail, sources told the publication the company is expected to tell employees to stop working on unreleased games by December. Meanwhile, it will reportedly look into ways to divest from titles already launched, with sources indicating ByteDance has no intention of returning to the video game market.
Reuters’ sources, who chose to remain anononymous, said this decision by ByteDance is likely to impact “hundreds” of employees. However, casual Chinese gaming brand Ohayoo, as well as casual games that run on TikTok (of which ByteDance is also a parent of), will reportedly not be impacted by the proposed changes.
This news is just the latest in a year of restructuring and layoffs across the video game industry, with the likes of Epic among the many companies that have been affected.
More recently, Embracer co-founder and CEO Lars Wingefors confirmed 900 employees were laid off from the company’s portfolio in the past financial quarter. This represented five percent of the workforce.
Chinese technology firm ByteDance is restructuring its video games business. Read More