TikTok’s parent company ByteDance is restructuring Nuverse, its gaming brand, with plans to lay off hundreds of employees.
The company is also set to divest itself of existing gaming titles including "Marvel Snap" and "Crystal of Atlan," and sell mobile gaming studio Moontoon, which it bought at a valuation of $4 billion in 2021.
“We regularly review our businesses and make adjustments to centre on long-term strategic growth areas. Following a recent review, we’ve made the difficult decision to restructure our gaming business,” a ByteDance spokesperson told Reuters.
As many as 700 of the 3,000 employees across ByteDance’s gaming business group could be affected by the company’s plan to restructure, according to claims made by tech site 36Kr. A separate report by TechCrunch says that mass layoffs have been confirmed for Monday.
The decision to wind down Nuverse -- which was originally created by ByteDance in 2019 -- is not expected to affect the company’s other gaming endeavors, like casual games running on TikTok or Ohayoo, the gaming brand for TikTok’s Chinese counterpart Douyin.
The news comes only weeks after ByteDance let go of “a few hundred” employees at Pico, its VR hardware company that launched a virtual reality headset in China last year that challenged Meta’s Oculus Quest.
As of now, it’s unclear whether Nuverse will be fully ousted, though it marks a significant change in ByteDance’s ongoing competition with Tencent and NetEase, two of China’s leading gaming giants.