Tencent unveils first sales fall, job cuts as economy crumbles

Given the new realities, Tencent executives have said that international games, cloud software and WeChat video will be their major strategic priorities. — AFP

Tencent Holdings Ltd logged its first-ever revenue decline after its workforce shrank almost 5%, underscoring the extent to which China’s worsening economy is hurting its biggest corporations.

The country’s most valuable company recorded its first quarterly drop in staffing since 2014, as layoffs rippling through the global tech sector finally hit the WeChat operator. Revenue fell a deeper-than-projected 3% to 134bil yuan (RM88.32bil) while net income also missed estimates, plunging 56% to 18.6bil yuan (RM12.25bil) in the June quarter.