Tencent Holdings ADR (OTC:TCEHY) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent changes in its leadership structure.

This response came after an internal email leaked, informing staff about significant personnel adjustments.

Key Leadership Changes

On Oct. 25, the internal email revealed that Zeng Yu, vice president of Tencent Interactive Entertainment Group (IEG), would no longer lead the technical line of the IEG or the Technology & Content Platform within the Platform and Content Group.

In a statement to Yicai, a Tencent spokesperson clarified that "more than 10 individuals" have been affected by these changes, but the company is not implementing widespread job cuts.

The spokesperson reiterated that Tencent's subsidiary, TiMi Studio Group, which employs around 6,000 people across 13 studios, is actively recruiting new staff. This contradicts earlier reports suggesting the company might merge teams and lay off about 1,200 employees, representing 20% of its workforce.

In addition to addressing rumors about potential job losses, Tencent also denied speculation about a 30% staff cut at its LightSpeed Studios.

Industry Context and Future Prospects

These leadership changes come at a time when Tencent is reportedly in discussions with Guillemot Brothers Ltd. about strategies to stabilize Ubisoft Entertainment SA (OTC:UBSFF), which faces several challenges. These talks could lead to a potential buyout of Ubisoft, taking the publisher private.

Price Action: Tencent is currently trading at $53.82, down 0.49% in the past 24 hours, according to Benzinga Pro.

• Tencent May Join Forces For Ubisoft Bid

Photo: Shutterstock.