Renren Games, the online gaming business of Chinese social network Renren, began a mass layoff — it is reported it’s about 50% – 60% of some 700 employees — from early this month.

Joseph Chen, CEO of Renren, confirmed it in an internal e-mail yesterday. He acknowledged the irrational expansion and declining of Renren Games in the past quarters. But he said their eventual goal was still have Renren Games go IPO.

He wrote in the e-mail that the performance of the gaming business in the past quarters isn’t satisfying that was “from high growth to low growth and then to negative growth. Although it has something to do with the harsh market conditions in the domestic market, … it has a lot to do with execution and control.”

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com