ByteDance gaming studio lays off dozens of employees amid Beijing’s gaming crackdown, sending a chill down industry

TikTok-owner ByteDance, which had been expanding into video gaming aggressively, is laying off dozens of employees at one of its gaming studios as Beijing’s crackdown on the industry clouds the outlook for once-promising titles, according to a person familiar with the situation.

The Chinese tech giant has dismissed many junior level employees from Ohayoo, a gaming unit it created in 2018 aimed at capturing some of the millions of users of its short video apps, according to one former Ohayoo employee who declined to be named as she is not authorised to speak with media. Several Chinese media outlets have also reported lay-offs at the unit.

“Nearly 100 employees have been affected,” the person said. Ohayoo has around 350 employees, according to company information.

An earlier report on Chinese website Leiphone.com, which covers Chinese technology news, said that Ohayoo had asked 79 employees to go home or to apply for other positions within the company. However, some of the internal positions offered are limited, making it likely that many employees will end up leaving the company, the report added.

ByteDance declined to comment on the reports on Friday.

The downsizing at Ohayoo has sent shock waves across China’s gaming community, as it reverses ByteDance’s previous position as an aggressive hirer of top talent. ByteDance’s resources are on par with Tencent Holdings, the world’s largest gaming company by revenue, and Ohayoo had been viewed as a big player in casual mobile games, or small games that allow people to play in short bursts between classes or on work breaks.