Perfect World has reportedly made large staff cuts. The tech giant, which exclusively distributes Dota 2 and Counter-Strike 2 in China and sold its North American branch to Embracer, is said to have laid off over a thousand staff.
Per Chinese outlet The Paper, the reductions have hit nearly all of the company’s business units across the cities of Beijing, Shanghai, and Chengdu. One mid-range team reportedly dropped from 150 staffers to “dozens” as a result of the cuts.
Thus far, the esports division is said to be the one department that saw no losses. That part of Perfect World’s business is said to produce “relatively low” income.
Back in April, Perfect World’s 2023-2024 financials showed the company made 491 million yuan (or $67.5 million) in net profit, a 64.31 percent decline from the previous year.
Video games are said to make up most of its revenue source, though the division saw losses in operating income (by 7.91 percent) and net profit (69.21 percent) compared to the previous year.
It’s unclear what this means for the studio project-wise. A Perfect World spokeperson told The Paper its previously announced One-Punch Man: World and Perfect New World are still in development, while outlets like Pandaily claim those projects are now suspended.