The tech giant Perfect World is reportedly undergoing significant staff cuts, with over a thousand employees being laid off as part of a restructuring. This has impacted almost all of the company’s business units across multiple cities in China, including Beijing, Shanghai, and Chengdu. Despite the layoffs, the esports division is said to have been spared from any losses as it continues to generate relatively low income.
In April, Perfect World’s financial reports for 2023-2024 showed a decline in net profit, totaling 491 million yuan (approximately $67.5 million). The company’s revenue primarily comes from its video game division, which experienced decreases in operating income and net profit compared to the previous year.
The impact of these staff cuts on the studio’s projects remains uncertain. While a Perfect World spokesperson stated that games like One-Punch Man: World and Perfect New World are still in development, there are conflicting reports suggesting that these projects may have been suspended. The future direction of Perfect World’s gaming portfolio is currently unclear.