TikTok Announces Major Layoffs in Video Games Division as it Restructures Operations

ByteDance, the Chinese tech giant renowned for its popular app TikTok, is set to lay off hundreds of employees in its video games division, according to recent reports. This move follows the confirmation of layoffs from its video game operations in Shanghai and Hangzhou in 2022, indicating a continued restructuring effort within the company.

The latest development reveals that ByteDance is winding down Nuverse, the unit that houses its gaming studios, resulting in the elimination of approximately 1,000 jobs. Sources speaking with CNN Business suggest that while Nuverse will retain some operations and staff, ByteDance plans to cease the development of unreleased games and may explore selling off certain titles.

Games currently with active players, including “Crystal of Atlan,” the survival game “Earth: Revival,” “One Piece: The Voyage / Fighting Path,” and “Dragonheir: Silent Gods,” are expected to continue for the time being amid the restructuring.

ByteDance’s attempt to gain a foothold in the competitive video game industry, which reportedly involved significant investments in gaming companies, has faced challenges against industry giants like Tencent and NetEase. The company initiated its foray into Nuverse in 2019, building on earlier investments in video games dating back to 2016.

Despite ByteDance’s substantial financial commitment to the video game sector, it appears to have fallen short of making significant strides against its formidable competitors.

Fox News Digital reached out to ByteDance for comment, but as of now, there has been no response from the company.

In a statement to CNN, ByteDance acknowledged the restructuring and emphasized a strategic shift towards its core business, with a likely focus on its globally renowned social media apps, TikTok, and its Chinese equivalent, Douyin.

“We regularly review our businesses and make adjustments to center on long-term strategic growth areas,” the ByteDance statement read. “Following a recent review, we’ve made the difficult decision to restructure our gaming business.”

The layoffs are expected to commence in December, marking a significant step in ByteDance’s ongoing efforts to streamline its operations and refocus on key areas of strategic growth.