The Chinese multinational Tencent is planning to change its organizational structure to bring some changes to its corporate structure. It has to improve its performance which has seen some slowdown this year. The internet giant which is known for its various services that range from gaming, entertainment, Artificial Intelligence, social media, technology, and IT services has been having a torrid year in the market where it has seen its market value dwindle in a big way.
As part of its restructuring, the company has said that it will be consolidating three of its content business groups into one. It will further form a new group for cloud and smart industries. In its statement, Tencent has said that it will explore “the integration of social, content and technology that is more suitable for future trends, and promote the upgrade from consumer internet to the industrial internet”. It will also be setting up a committee to help strengthen its efforts in R&D to promote collaboration and innovation.
Tencent has received a lot of criticism both from the investors and analysts alike in the recent times. With increasing regulations in China its gaming business too has taken a hit. Last week, the company’s shares closed at HK$ 323.20 as compared to HK$ 406 at the end of 2017. The company reported its first quarterly profit fall in almost 13 years.