Home » World Business & Employment News » TikTok developer ByteDance will cut jobs cuts in gaming division
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ByteDance, the company behind TikTok, has announced cuts in its gaming division.
The Beijing-based company ventured into the gaming market in 2019, aiming to compete with industry giant Tencent.
Despite its efforts, ByteDance struggled to capture significant market share in the highly competitive gaming industry.
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The downsizing is expected to impact hundreds of ByteDance employees.
The company will likely continue games with active players, such as "Crystal of Atlan" and "Earth: Revival.
However, titles that have not been launched are slated for closure in December.
A ByteDance spokesperson said the company regularly evaluates its business strategies and has now "made the difficult decision to restructure our gaming business."
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ByteDance established its gaming division, Nuverse, in 2019, marking a significant entry into the gaming market.
Nuverse acquired external studios, such as C4games, to enhance production capacity as part of its expansion strategy.
However, despite these efforts, Nuverse has faced challenges, with none of its games achieving significant commercial success.
The global video game market, estimated to be worth $217 billion (£172 billion) last year, has become highly competitive.
Tencent stands out as the world's leading gaming company in revenue.
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ByteDance, founded in 2012, gained international acclaim by creating the widely popular TikTok app, boasting an estimated 1.1 billion monthly users.
However, the success of TikTok has also attracted scrutiny from governments worldwide, including the US and China.
Former US President Donald Trump frequently criticized ByteDance during his term, alleging national security threats and expressing concerns about user data privacy.
The pressure has been mounting on ByteDance to consider options such as spinning off TikTok shares to alleviate concerns and potential bans.
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