Chinese developer Perfect World experiences layoffs, according to a report

Thousands of employees have reportedly been laid off by the Chinese enterprise Perfect World.

Citing information from Game Developer, which translated a report from Chinese news outlet The Paper, extensive staff cuts have been executed across the company's Beijing, Shanghai, and Chengdu offices.

It appears that most departments felt the impact of these layoffs, with the exception of the esports division.

Regarding ongoing projects, there are conflicting reports: The Paper has indicated that development on One-Punch Man: World and Perfect New World continues, whereas Pandaily claims these projects have been halted.

Perfect World is known for its roles as a developer, publisher, and exclusive distributor of Dota 2 and Counter-Strike 2 in China. In addition, the company operates a film production branch.

The firm's financial troubles have been highlighted by several sources, reporting a dramatic 64% decline in net profits as per its annual report.

In December 2021, Perfect World's European publishing arm was sold to Embracer and subsequently rebranded to Gearbox Publishing in April 2022.

Last year, the company was not spared from layoffs, which also affected various Embracer Group studios. Further, the San Francisco office was rebranded to Arc Games in April 2024.