ByteDance has reportedly fired hundreds of employees from its video game business.
According to the South China Morning Post, the company behind TikTok is “aggressively” downsizing its gaming operations, with sources telling the publication hundreds of employees have been affected.
ByteDance is said to have removed most of the staff at its Shanghai-based developer Wushuang Studio, either through layoffs or by relocating employees to other parts of the company.
Sources also claim that jobs at Hangzhou-based developer Jiangnan Studio will be cut.
ByteDance will reportedly maintain some game operations through its Shanghai office and will focus on supporting titles already launched.
GamesIndustry.biz contacted ByteDance for comment.
ByteDance has invested in its gaming operations in recent years. During last year’s organizational restructuring, gaming was positioned as one of the six pillars of the business.
The bulk of ByteDance’s games business is centered on its mid-core and hardcore publishing arm, Nuverse, as well as acquired studios such as Moonton Technology and C4games.
The report of layoffs follows similar news from another social media company, Snap, which this week confirmed it had laid off 20% of its workforce — around 1,300 employees — and put its gaming business on hold.