More than a hundred employees at the Chinese tech giant Tencent, the developer of Player Unknown Battle Ground, was let go on Monday for breaking the company’s policies. Eventually, some employees were found guilty of bribery and embezzlement after calling the police.
The massive crackdown on China’s tech sector, which began at the end of 2020, has been difficult for the Hong Kong-listed company, which is also the owner of the popular super app WeChat and is the world’s leading maker of video games. doing.
Anti-fraud policy
After two-quarters of a decline in sales in a row in November, the business released a statement in which it stated that it discovered more than one hundred employees in violation of its anti-fraud policy.
She added that more than ten individuals have been transferred to China’s public security agencies.
The company stated, “Tencent’s anti-fraud department has stepped up its crackdown, investigating and addressing many violations with common problems in response to issues of internal corruption and misconduct.” “Compared to 2021, the number of cases and staff members being investigated and treated is increasing in 2022,” she added.
She added that the defendant was found to have accepted bribes and stolen company funds.
Her PCG division of the company, which oversees a vast output of content including news, sports, and movies, was home to many of those fired and accused of corruption.
However, it also includes Tencent’s other businesses, such as fintech and cloud computing.
Most notably, a worker was sentenced to three years in prison for “taking bribes from non-government officials.” State media reported that Pony Ma, the CEO of the company, stated at an internal staff meeting last month that the level of corruption at the company was “shocking.”
Beijing’s crackdown on video games has had a significant impact on Tencent. In response to government demands, hundreds of businesses pledged to remove “politically harmful” content from their products and impose restrictions on minors.
However, Hong Kong shares have nearly doubled since October 28, when they reached their lowest level since 2017. This indicates that the company is beginning to recover.
The company also licensed a video game for the first time in 18 months last month, ending a dry spell that had weighed on the profits of the world’s leading game developer.
China intends to make a “golden bet” on its two largest technology companies, Alibaba and Tencent, while Beijing expands its influence over the country’s most influential tech companies and businessmen. In a two-year tech crackdown that began after Alibaba founder Jack Ma criticized regulators, the Chinese government’s move represents a move away from imposing substantial fines and sanctions.
The crackdown has been turbulent for Chinese tech companies, destroying billions of dollars’ worth of value and preventing Ma’s IPO of Ant Group, a financial services company, which was supposed to be the largest IPO in the world. and additional steps were taken.
The fintech company made the announcement earlier this week that Ma, who was once China’s richest man but is now living in exile in Japan, will give up control of the business.
