Tencent Holdings, the Chinese giant with fingers in many pies all over the world, has announced it will be restructuring for the first time in six years.
The decision comes as Tencent faces increasing challenges dealing with Chinese governmental regulations regarding the gaming industry. PUBG Mobile, which should have been a huge moneyspinner for Tencent in China, has been blocked from including in-game purchases – as well as other moves curtailing profits.
As reported on Reuters, the restructuring will see three business content groups downsized into one, with a new group created to focus on the cloud and smart industries. A technology committee will also be set up internally, to focus more on R&D and push for collaboration and innovation.
The megacorp was hit with a fall in profits for the first time in 13 years, as reported back in August, owing to the very same Chinese regulatory issues that have pushed the decision to restructure.
Tencent’s share price has been falling throughout 2018, and reports of criticism from investors and analysts alike continue to come in about the company’s debts and worries about its overseas strategy.
Despite the non-too-rosy news, Tencent continues to announce new partnerships and co-operative efforts – one of the most recent being with Square Enix. The deal is set to see Tencent working on new, triple-A titles alongside the Japanese publisher (and its IP). No changes to this deal have been announced as a result of any restructuring.