TikTok proprietor ByteDance is reportedly downsizing its online game enterprise in a transfer that has resulted in a whole bunch of layoffs.

According to the South China Morning Post (SCMP), the Beijing-based firm has laid off or transferred nearly all of staff from its Wushuang Studio in Shanghai, with that transfer coming simply months after the closure of its 101 Studio in June. ByteDance has additionally reportedly lower jobs at its Jiangnan Studio in Hangzhou.

The SCMP claims to have spoken with folks accustomed to ByteDance’s plans, who stated that whereas the gaming enterprise will stay operational as a way to help sure merchandise, important cuts are being made.

If the report is correct, it would be a notable change in path for an organization that was lately spending large to increase its online game enterprise, buying studios together with Moonton Technology and C4 Games.

The Chinese online game market is dealing with a second of regulatory upheaval, with officers within the area proposing new playtime and spending restrictions that can influence how younger folks can interact with video games.

ByteDance declined to touch upon the scenario when contacted by SCMP.