Tencent Sees First Sales Fall as China Economy Slows
Chinese tech giant, Tencent has cut over 5,000 jobs and shut down parts of its business as it continues to grapple with its first sales fall in its history.
As reported by BBC, revenue at the firm slipped 3% year-on-year in the April-June period, hit by declines in ad spending and at its online gaming business.
The WeChat owner is feeling the effects of a regulatory clampdown on gaming, as well as wider economic downturn.
China’s central bank had earlier cut interest rates to try to spur activity.
The country, which continues to respond to Covid outbreaks with mass shutdowns, last month reported its economy had contracted sharply in the three months to July and signaled it may miss its official 5.5% growth target.
In an appearance on Tuesday, Chinese Premiere Li Keqiang said China was facing “the most difficult point of economic stabilisation” and urged provincial leaders to boost their support for the economy.
“We must consolidate the foundation for economic recovery and development with a sense of urgency that cannot wait,” he said.
Other companies have also taken a hit, notably e-commerce giant Alibaba, which said it had seen no sales growth in its most recent update for investors, a first for the company.
