ByteDance, the owner of TikTok, is cutting hundreds of jobs in its gaming unit, CNBC and Reuters reported, citing people familiar with the situation.
After investing billions of dollars in Nuverse, its gaming division, the company decided to scale it back, but won't shut it down completely, CNBC said.
In a statement to Reuters and CNBC, ByteDance confirmed the restructuring of the unit, without providing details.
"We regularly review our businesses and make adjustments to center on long-term strategic growth areas. Following a recent review, we've made the difficult decision to restructure our gaming business," the company said, according to the reports.
The Chinese company told employees to stop work on unreleased games, according to the reports.
ByteDance will seek a buyer for mobile gaming studio Moonton, after acquiring the company for a reported $4 billion in 2021, CNBC said.
