• By The Financial District

Chinese Tech Firms Ax Staff As Beijing's Crackdown Intensifies

Layoffs have reportedly rocked China's tech sector amid the government's ongoing tech crackdown, Huileng Tan reported for Business Insider.

Photo Insert: iQiyi's Nasdaq debut

Among those affected are iQiyi — seen as the Netflix of China — and Kuaishou — a short video app competing against TikTok parent ByteDance.

Video streaming platform iQiyi is laying off hundreds of workers, or some 20% of its workforce across various departments, reported Caixin Global, citing company employees. The outlet reported that in the least profitable divisions, up to 40% of the staff have been made redundant.

According to the company, Nasdaq-listed iQiyi posted 1.4 billion Chinese yuan ($220 million) in operating losses in the third quarter this year, The company saw decreased ad revenues after many of its programs were delayed due to COVID-19 production issues, it said in its third-quarter earnings call.

It is also dealing with programming shakeups. In August, iQiyi announced it would stop airing idol competitions amid the government's crackdown on fan culture, Reuters reported.

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