NetEase cuts jobs in Shenzhen as first-person shooting game ‘underperforms’

The lay-offs at NetEase’s offices in the southern tech hub are said to affect employees involved in mobile game Hyper Front

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The latest job cuts at NetEase reflect ongoing challenges faced by China’s video gaming industry amid slow consumer spending at home and macroeconomic headwinds. Photo: Shutterstock

Ann Caoin Shanghai

Published: 9:00pm, 29 Nov 2024

NetEase, China’s second-largest video gaming company, has cut an undisclosed number of jobs involved in an “underperforming” project that will soon be shut down, according to a person with knowledge of the matter and Chinese media reports.

The lay-offs at the company’s offices in southern tech hub Shenzhen affected employees involved in mobile game Hyper Front, a tactical team-based shooter that was launched on August 30 on the mainland, according to the person who asked to be anonymous because he is not authorised to speak to the media.

That followed NetEase’s announcement last month that it would end the operations of Hyper Front because its performance failed to meet expectations, even after more than 10 million gamers made reservations online ahead of the title’s release.

“Not many” NetEase employees were involved in that game in Shenzhen, according to the person.

The job cuts were first reported on Friday by Chinese media. A report by digital outlet The Paper, which cited people close to NetEase, described the company’s action as a workforce reduction affecting “a single product”, not a mass lay-off at its Shenzhen offices.

NetEase did not immediately reply to a request for comment on Friday.

A promotional poster of NetEase’s mobile shooter game Hyper Front. Photo: Sina