Tencent says no plans for layoffs as company undergoes strategic upgrade

Tencent announced (in Chinese) this morning that it is undergoing a “strategic upgrade”, which involves the establishment of two new business divisions.

In response to concerns that Tencent employees might lose jobs as a result of the company-wide reorganization, Tencent said in a statement to a local news outlet (in Chinese) that no massive layoff will result from this structure adjustment. The company’s human resource department also assured that the company is still recruiting talent, however, some staff will be relocated to other business divisions.

Prior to the strategic upgrade, Tencent’s company structure was comprised of 7 main businesses. After the restructuring, the company will have two new divisions—Cloud and Smart Industries Group (CSIG) and Platform and Content Group (PCG)—added on top of the existing Corporate Development Group (CDG), Interactive Entertainment Group (IEG), Technology and Engineering Group (TEG), and Weixin Group (WXG). The company has decided to scrap three business divisions including Mobile Internet Group (MIG), Online Media Group (OMG), and Social Network Group (SNG).

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