ByteDance, the parent company of TikTok, reduces employment in the gaming sector

ByteDance, the parent company of TikTok, has confirmed that it will significantly downsize its gaming business following reports of job cuts. The company ventured into the gaming market in 2019 to rival industry leader Tencent but has failed to gain market share. While games with active players will continue, unreleased games will be shut down in December. This decision is expected to impact hundreds of employees. ByteDance's gaming division, Nuverse, was established in 2019 as a strategic move into the once-booming gaming sector. However, their performance in the market has been inconsistent, with none of their games becoming a commercial success. As a result, ByteDance is now retreating from the highly competitive gaming industry. In contrast, Tencent remains the world's largest gaming company by revenue. ByteDance, founded in 2012 and based in Beijing, gained global recognition through its popular app TikTok, which boasts approximately 1.1 billion active monthly users. TikTok has faced scrutiny from governments worldwide, with concerns raised about the sharing of personal data. Despite denying these allegations, ByteDance has faced pressure to separate its TikTok shares or face a potential ban.