Tencent confirms leadership shakeup, denies mass layoffs across its gaming division

Tencent has refuted reports of mass layoffs that were rumored to affect hundreds of employees in its video game division. Instead, the Chinese tech giant shared information about changes in its leadership.

• Online rumors claimed that Tencent has reorganized its Interactive Entertainment Group (IEG) business unit, which is responsible for R&D, operation, and development of video games and other interactive entertainment products.
• The alleged restructuring would involve merging some teams within TiMi Studio Group, developer of Honor of Kings and Call of Duty: Mobile, and put 1,200 employees, or 20% of its 6,000 workforce, at risk of layoffs.
• In addition, PUBG Mobile maker LightSpeed Studios was said to cut 30% of its staff working on an unannounced Palworld-like mobile game.
• A Tencent spokesperson told Yicai Global that none of these claims are true. In fact, TiMi Studio Group is actively hiring, with plans to expand its team instead of laying off staff.
• The company, however, confirmed information from an internal email that its VP Zeng Yu would step down as head of its IEG’s technical line and the Platform and Content Group Technology & Content Platform. He will be replaced by senior VP Ma Xiaoyi.
• The leadership shakeup will affect more than 10 executives, most of whom will be reassigned or given additional roles at Tencent, with only two of them (besides Yu) leaving their positions.
• According to Yicai Global, the Chinese company has established four departments within its IEG unit, including one focused on product efficiency.