BitDance is cutting jobs in its video game division
BitDance has confirmed it will significantly scale back its gaming business following reports of job cuts. The Beijing-based company, which also owns social network TikTok, entered the gaming market in 2019 to compete with industry leader Tencent. But it failed to grab the market share, he writes BBC..
The decision is likely to affect hundreds of employees. A spokesperson for BitDance told the BBC that the company regularly reviews its business and has "taken the difficult decision to restructure its gaming business". The global video game market was estimated to be worth $217 billion last year, according to market research and consultancy Grand View Research.
BitDance's creation of its Nuverse gaming division in 2019 was widely seen as a major push into the once-burgeoning sector. In 2021, the company formalized its status as one of six business units under a broader structural overhaul.
To build production capacity, Nuverse acquired outside studios such as C4Games. But Nuvers' performance was uneventful and none of his games became commercial hits. The latest move marks a retreat from the competitive video game sector. BitDance's competitor, Tencent, is the world's largest gaming company by revenue.
Formed in 2012, BitDance created the global hit app TikTok which has around 1,1 billion active monthly users. His immense popularity has meant he is under scrutiny from governments around the world, including in the US and China. During his tenure, US President Donald Trump regularly attacked BitDance, accusing TikTok of being a threat to US national security.
Politicians and officials have expressed concern about users' personal data being provided to the Chinese government. TikTok has denied allegations that it shared user data, but its chief executive Shou Zi Chu faced hours of questioning at a US congressional hearing in March. Pressure is mounting on BitDance to divest its shares in TikTok or risk facing a ban.