Perfect World downsizes workforce through multi-unit layoffs and halts game projects, sources say

Perfect World has recently announced significant staff cuts, with reports suggesting that over a thousand employees have been laid off. The tech giant, known for distributing popular games like Dota 2 and Counter-Strike 2 in China, recently sold its North American branch to Embracer.

According to Chinese outlet The Paper, the staff reductions have affected almost all of the company’s business units in cities like Beijing, Shanghai, and Chengdu. One mid-range team reportedly saw a drastic decrease from 150 staffers to only “dozens” due to the cuts.

Interestingly, the esports division of Perfect World appears to be the one department that has not experienced any losses. However, it is mentioned that this aspect of the business generates “relatively low” income.

In terms of financials, Perfect World reported a net profit of 491 million yuan ($67.5 million) in the 2023-2024 fiscal year, a significant decline of 64.31% from the previous year. Video games continue to be the primary revenue source for the company, although operating income and net profit for this division saw declines of 7.91% and 69.21% respectively.

The impact of these staff cuts on the studio’s projects remains uncertain. While a Perfect World spokesperson stated that projects like One-Punch Man: World and Perfect New World are still in development, other sources suggest that these projects may have been suspended.