Chinese tech giant Tencent Holdings (TCEHY) is reportedly laying off employees for the second time in 2022 as part of its efforts to cut down costs. The news was first reported by Reuters, citing sources close to the matter. The job cuts will be made across Tencent’s video streaming, gaming, and cloud businesses.
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The company had lowered its headcount by nearly 5,500 in the second quarter of 2022. Also, it closed down some non-core businesses, including online education, e-commerce, and game live-streaming.
Several other companies are also cutting down costs as COVID restrictions in China, rising U.S. inflation, supply-chain disruptions, and other geopolitical tensions have resulted in a slowing global economy. Giants such as Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Intel (NASDAQ:INTC), among others, have fired employees to contain rising costs.
Tencent is slated to announce its third-quarter results on Wednesday. Currently, the Street expects Tencent to post a profit of $0.45 per share, lower than the prior-year period figure of $0.62 per share. Meanwhile, revenue is pegged at $20 billion.
What is Tencent’s Price Target?
The average Tencent price target of $31 implies upside potential of 7.19%. TCEHY stock has a Hold consensus rating based on one Hold.
