According to sources close to the matter, the Chinese search engine Baidu recently announced plans to lay off at least 100 people from the organization’s gaming unit. This decision aims to minimize company losses as gaming crackdowns continue to spread across the country.
According to sources, the decision to make lay-offs was announced to some employees towards the end of December. The exact number of people being let go has not been revealed.
The company is expected to “significantly downsize” its core video game development team. Furthermore, sources said that services to games developed by outside studios will be terminated.
Baidu Inc. is a Chinese multinational technology company that specializes in Internet-related services and artificial intelligence. The Beijing-based business was founded in 2000.
The Profit‘s Take:
So, Baidu is being forced to lay off people because of China’s gaming regulations. Like I have said in the past, where does this end? The Chinese government is showing that it doesn’t favor ANY companies, even home-grown corporations like Tencent or Baidu. Nobody can influence the Chinese Communist Party or bend the party’s will. Nobody is immune to these regulations… AT ALL, regardless of the organization’s importance to the country’s economy. I would advise any investor to stay away from investing in the Chinese gaming market.
(All information was provided by South China Morning Post and Wikipedia)
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