Perfect World to See Net Loss in H1 2024, Announces Layoffs and Future Plans
TapTechNews July 10th news, Perfect World released an announcement on July 9th. The company expects a net loss of $25.71 million - $31.64 million in the first half of 2024, turning from profit to loss year-on-year.
According to the announcement, during the reporting period, the company's game business is expected to achieve a net loss of $20.57 million to $26.32 million attributable to shareholders of the listed company, and is expected to achieve a net loss of $19.06 million to $24.89 million after deducting non-recurring损益. The main reasons for the changes are:
(1) During the reporting period, several in-service games, aiming at long-term operation, continued to update content and fine marketing, but due to the influence of the product life cycle, the revenue naturally fell back compared to the first half of 2023, and the corresponding performance decreased year-on-year.
(2) During the reporting period, the company carried out talent echelon sorting and personnel optimization, etc., and the related expenses generated thereby had a phased impact on the current performance.
(3) One-Punch Man: World was publicly tested in many countries and regions overseas, the overall performance was lower than expected, affecting the current performance.
Perfect World said that looking to the future, the company will firmly focus on the two-line business layout of MMO+ and card+, and actively promote a number of self-developed games such as Jade Dynasty World, Jade Dynasty 2, Code YH, Code Z, etc., continue the classic category advantage of MMO, and expand the matrix of innovative categories such as open world.
TapTechNews noticed that the report also said that as a series of measures were implemented, the company's personnel expenses, office rent and other corresponding reductions; at the same time, with the help of fine project management and control and the empowerment of AI technology, the effect of the company's cost reduction and efficiency increase gradually appeared, resulting in the improvement of the net profit after deducting non-recurring损益 in the second quarter of 2024 compared to the previous quarter.
The game company Perfect World fell into a wave of layoffs last month, and there was a message on the Internet that Perfect World's largest-scale layoffs, and almost two buildings were vacated. Some employees said that the total number of layoffs exceeded a thousand, and some R & D departments directly lost several hundred people, and the中台 originally had 150 people, and now there are only a few dozen people.
In response, Perfect World said that in order to deal with the challenges, the company took the initiative to sort out and adjust, and adopted a series of solutions, including optimizing resource allocation, focusing on core projects, carrying out necessary personnel optimization, and office space intensification, so that resources are more concentrated on the core advantageous businesses. The process of adjustment will inevitably bring about growing pains. The company is trying its best to resolve the negative effects, and at the same time, it also hopes that the outside world can give some time and space to allow the company to focus on cultivating internal skills and improving operating efficiency.