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NetEase cuts jobs, projects as growth remains slow

NetEase Inc. is undergoing major restructuring under CEO William Ding, cutting hundreds of jobs and halting multiple game projects.

The company is shifting to a more focused portfolio, canceling around a dozen games and shutting down some international studios, including Ouka, Worlds Untold, and Jar of Sparks.

Fewer than 60 employees were affected by these closures.

Additionally, Ding has paused new investments in gaming studios and IPs since early 2024 and scaled back the global investment team.

Financially, NetEase saw mixed results in the December quarter. Gaming revenue grew by 1.5%, but gross profit declined by 2.6%.

Overall growth has been slow, with only single-digit increases in the past two years.

Marvel Rivals has been a standout, generating over US$200 million in revenue since December and attracting more than 40 million users.

Despite industry challenges like stagnant player growth and rising development costs, Ding remains focused on long-term revenue potential.

The company is committed to supporting skilled creators and high-quality projects, such as Eggy Party.

Recent NetEase developments

Timeline
02-Dec-2024 📉 NetEase said to cut jobs due to game underperformance
  • NetEase ends Hyper Front project, cuts jobs.
  • Game failed to meet expectations despite 10M pre-reservations.
27-Dec-2023 🎮 Tencent, NetEase shares recover slightly after Beijing relaxes gaming stance
  • Tencent and NetEase shares recover modestly
  • China eases new gaming curbs after heavy losses
28-Apr-2022 🎮 NetEase to end battle royale title in June
  • NetEase to shut down ‘Rules of Survival’ on June 27
  • Players to be refunded for diamonds until Sept 28
30-Jul-2021 🎶 NetEase’s music-streaming arm gets nod for $1b Hong Kong IPO
  • Cloud Village gets HKEx nod for IPO.
  • Aiming to raise $1 billion in debut.
01-Jun-2020 🎮 China’s NetEase to raise $3.2b in Hong Kong listing
  • NetEase plans HK$24.5 billion IPO in Hong Kong.
  • 45% of funds allocated for global expansion efforts.
25-Oct-2019 📉 Why NetEase’s e-learning unit slashed New York IPO target
  • Youdao halves IPO target to $116M amid losses
  • Only 5% of China’s online education firms profitable

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