Huya, one of China’s leading game streaming platforms, plans to cut staff as the Chinese regime continues tightening the industry.

Reuters citing some sources, reported on April 25 that Huya intends to lay off hundreds of staff.

The report said that Nimo TV, an international version of Huya, or the Chinese version of U.S. platform Twitch, has already cut a large workforce.

According to Sina Finance, the layoff proportion was as high as 70% in Huya’s international business department, whereas the other departments laid off 50%.

In its latest annual report, Huya said it had nearly 2,100 employees in 2020.

Chinese authorities are scrutinizing the game streaming industry, and thus many tech companies have to make significant changes to their business practices.

Douyu, a rival of Huya, is also cutting staff. Both companies told Reuters that this is not a large-scale layoff but just a normal personnel adjustment to optimize resources.

Tencent Holdings, owner of Huya, has undergone some major adjustments as well.

CNN reported that Penguin Esports, the game streaming platform of Tencent, announced that it would shut down all of its services on June 7.

In addition, Tencent had a plan in 2020 to make a merger deal that was valued at nearly 6 billion dollars at the time by combining Penguin Esports with Huya and Douyu.

But the Chinese government blocked Tencent from gaining too much market power and becoming dominant in the video game streaming market.

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