Report: NetEase initiates layoffs following underperformance of Hyper Front relaunch

Image credit: NetEase

Update: NetEase has informed GamesIndustry.biz that instead of layoffs, employees were reassigned to different departments.

Additionally, the company clarified that Operation Apocalypse is a distinct game from Hyper Front. It was introduced in February and closed in October.

Further details are being sought from the company.

Original report: Reports suggest that NetEase reduced its workforce due to the poor performance of the mobile game Hyper Front, also called Operation Apocalypse, in the Chinese market.

According to some Chinese outlets and insiders, as highlighted by the South China Morning Post, the cuts impacted employees at NetEase's office in Shenzhen.

Operation Apocalypse was released in China on August 30, and last month NetEase reportedly announced its closure because the project didn’t succeed as anticipated.

The exact number of employees affected remains undetermined, but it appears to be a small segment of the workforce.

The closure of Operation Apocalypse is part of NetEase's plan to halt four games in mainland China, including Pokémon Quest's local adaptation.

Previously, Riot Games had filed a lawsuit against Hyper Front for its alleged imitation of Valorant, leading to the game's shutdown. Later, it was reintroduced with updated graphics under a new name in China.

Although GamesIndustry.biz sought a comment from NetEase, there was no response before the article's release.

Moreover, NetEase's studio Worlds Untold announced a temporary halt in its activities following a launch in 2023.

Also, earlier this year, NetEase reportedly closed Ouka Studios, known for developing Visions of Mana, with the studio's director Ryosuke Yoshida joining Square Enix.