37Games China said that the company will adjust its organizational structure and human resources according to the 2022 strategic development plan.
This time around, 37Games is going through a “massive layoff”, and it is described that “the percentage is not small” and that “the whole company is reducing costs and increasing efficiency”. They recently laid off nearly 100 employees. According to the feedback of the online community, the number of employees who have to leave work can be up to 200-300 people.
According to Game4V’s research, the reliability of the layoff news is relatively high, but the scale is not as large as the Chinese media said. In addition to the 30 people at the Chengdu branch, the recent layoff of the Chinese game company is about 130 people.
According to the financial report figures for 2021, the total number of 37Games employees is now nearly 4,000 people. Simply calculate the firm’s current employee ratio of 3.25%. Compared to Tencent’s 2021 ESG Report, Tencent’s employee turnover rate last year was 12.4%.
In March of this year, in the face of rumors of layoffs by major industry players, some investors asked 37Games if there were any further layoffs planned. At the time, the unit said the company would “adjust its organizational structure and human resources according to its strategic development plan and actual business needs.”
In mid-July, the company’s R&D team reportedly canceled its Chengdu branch and about 30 employees were laid off. In response, the official response stated that it was planned in advance.
Due to the suspension of version number release for 9 months last year and the continuous shrinking of total control, the number of new games available for distribution in the market has plummeted. This is a big challenge for publishers and developers in the Chinese game market.
QuestMobile’s 2022 China Mobile Internet Semi-Annual Report shows that as of June this year, online game advertising costs have dropped to 645 million yuan, down more than 60% year-on-year. .
On July 11, 37Games Semi-Annual Results Report 2022 shows that in the first half of the year, net profit reached 1.6 billion to 1.7 billion yuan, up from 87 percent in the same period last year, 42% to 99.13%. Among them, the revenue from overseas market increased by more than 40% over the same period last year, and the overseas market has become the most important growth pole of this unit.