As per Sources, after announcing $19.8 billion in revenues for the June quarter a 3% decline, that was the company’s first sales decline since going public, the Chinese business Tencent laid off 5,500 employees.
They said that, the largest video game & social media company in the nation reportedly slashed around 5,500 positions in the second quarter as a result of the economy’s deterioration. Tencent reportedly cut its employees for the first time since 2014, dropping it from 116,213 in March to 110,715 by the end of June.
Tencent’s CEO and founder, Pony Ma Huateng, said: “We actively sold non-core businesses during the second quarter, put a cap on our marketing spending, and reduced operating costs, which allowed us to sequentially increase our non-IFRS earnings despite difficult sales conditions.
Quarter’s Net Profit of Tencent :
The quarter’s net profit was 18 billion yuan, which was less than the 25 billion yuan analysts had predicted and decreased by 56% from the same time previous year. Furthermore, there have been speculations that Tencent, one of China’s largest meal delivery businesses, was planning to sell all or a portion of its 17% stake in Meituan.
However, the company denied this information during the Wednesday results call. International and domestic video game sales both fell. The company attributed the poor performance on “fewer big game launches, decreased user expenditure, and the installation of minor protective measures”.
News From : CRUCIAL NEWS GLOBAL
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