The decision would reportedly affect hundreds of employees.
ByteDance plans to move away from mainstream video games and wind down on its Nuverse gaming brand, according to Reuters. ByteDance is the company behind TikTok. Meanwhile, Nuverse is the publisher of Marvel Snap.
TikTok owner ByteDance and Nuverse layoffs
According to the report by Reuters, ByteDance will inform employees to stop working on unreleased games by December. Additionally, the company will divest from launched titles.
"The decision is likely to impact hundreds of employees, some of whom learnt about the move at the weekend," the report stated.
Reuters' sources added that ByteDance has no plans to return to the global video games market.
"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," a spokesperson told Reuters.
According to a separate report by TechCrunch, mass layoffs already began on Nov. 27. However, it's unclear how many employees will eventually be affected by the restructuring of the gaming business.
"This round of mass layoffs started on Monday and many members of Nuverse are still anxiously awaiting a verdict on their future," unnamed sources told TechCrunch.
TikTok owner ByteDance and Marvel Snap publisher Nuverse
Another unnamed source told Reuters that ByteDance's casual gaming brand, Ohayoo, will not be affected. The same will go for the casual games on TikTok.
The publication then noted that although Nuverse's Marvel Snap created a cult-like following, it was not a commercial hit. Reuters also mentioned gaming titles Crystal of Atlan and One Piece: The Voyage.
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