Baidu Swings the Axe and Laid-off more than 100 People.
As the crackdown on the gaming industry further intensifies in China, Baidu has laid off more than 100 employees of its gaming unit. The report came to light last week when sources close to the matter disclosed it to the media.
The decision was made to minimize the organization’s losses after government regulators continued with their strict crackdown on the gaming industry.
The report came out from people closely related to the matter and revealed that Baidu is currently doing downsizing in its video gaming unit. The decision will help the organization to cut down on the losses incurred due to Beijing’s crusade against the gaming industry.
The sources further added that the exact number of laid-off employees is not known but is more than a hundred. The decision was announced to some of the employees in December last year.
Baidu has yet to release an official statement on the decision.
However, the source claims that the company will “significantly downsize” its video gaming unit. Moreover, the development services given to studios outside the organization will also be terminated.
The news highlights how big the government crackdown is and how massively it has impacted companies associated with it. The anti-gaming crackdown is in full swing and penalizes foreign and indigenous companies alike without any discrimination.
Local giants like Tencent and Baidu have failed to influence the Chinese government and are bearing the brunt. Previously, the government reduced the gaming hours for kids under 18 to a maximum of three hours a week.
In addition, the government suspended issuing licenses to new gaming companies.
The regulations have incurred losses to many companies. The Chinese tech giant suffered a loss of $2.6 billion in the last quarter.
After suffering huge losses, Baidu is now backtracking from video gaming and plans to invest in “hard-tech”.
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