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The Chinese tech giant behind TikTok, ByteDance, will be laying off hundreds of workers in its video games division, new reports showed.
ByteDance originally confirmed layoffs from its video game operations in Shanghai and Hangzhou back in 2022. That trend will apparently continue in 2023 after reports revealed an even larger pullback on Tuesday.
The company is winding down Nuverse, the unit that houses its gaming studios, in a restructuring move that will cut approximately 1,000 employees. Sources speaking with CNN Business stated that while Nuverse will keep some operations and staff, ByteDance will halt the development of unreleased games and may begin selling off titles.
ByteDance will lay off approximately 1000 jobs in a move to scale back its video game division. ((Photo by VCG/VCG via Getty Images) / Getty Images)
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Meanwhile, games with active players such as "Crystal of Atlan" and survival game "Earth: Revival," "One Piece: The Voyage / Fighting Path" and "Dragonheir: Silent Gods" are expected to continue for the time being.
Fox News Digital reached out to ByteDance for a comment.
Though the company reportedly invested billions in video game companies, ByteDance has apparently failed to make a significant gain against competitors such as Tencent and NetEase. The company began investing into Nuverse back in 2019 with initial investments into video games dating back to 2016.
ByteDance has previously scaled back on its video game industry since 2022. (oby Sessions/PC Gamer Magazine/Future via Getty Images / Getty Images)
According to a statement from ByteDance to CNN, the company will begin focusing on its core business, likely prioritizing its social media apps TikTok and its Chinese equivalent Douyin.
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"We regularly review our businesses and make adjustments to center on long-term strategic growth areas," the statement read. "Following a recent review, we've made the difficult decision to restructure our gaming business."
The layoffs are expected to begin in December.
ByteDance will likely focus more on its social media apps such as TikTok. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
