Rumor: China's NetDragon facing massive layoffs, games could be affected

Chinese internet and gaming company NetDragon is in for a bit of a shift, if the latest rumors are to be believed. Netdragon employees have posted messages alleging that layoffs at the company have already begun, and that the company could be set to lose as many as half of its current workers. A letter from chairman Liu Dejian to his employees has also been circulating on the web that doesn’t confirm the layoffs, but does suggest that NetDragon is changing its approach in the face of increased competition, and that this may lead to some employee turnover.

If the layoffs are as massive as suggested, there’s no way the company’s games business won’t be affected, but even if they’re less significant than the 50 percent cuts being rumored, it could be bad news for games. NetDragon’s latest quarterly financial reports showed that the company’s peak simultaneous players and average simultaneous players both dropped. NetDragon’s overall results for the quarter were good, so the comparatively disappointing performance on the gaming front might make it a prime target for cuts.

It’s not clear what programs might be cut yet, but NetDragon operates games in the PC, browser, and mobile realms, so whatever happens, Chinese gamers are likely to be affected. Personally, I’m just hoping that the cuts won’t affect the upcoming NetDragon-published game Tiger Knight, which I think looks awesome.

(via QQ Games)

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