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Report: Tencent to demote, ax 10% of managers

Tencent Holdings Ltd. is putting about 10% of its managers on notice as the company shakes up its workforce amid a slowdown in growth, Bloomberg News reported, citing people familiar with the matter.

The restructuring will see the tech giant demoting or axing its lowest-performing general managers and promoting its "star performers," the sources said.

The move comes amid concerns about violent content, addiction and health issues among children that led Chinese regulators to curb the release of online games for a nine-month period. China's crackdown on gaming licenses contributed to a 4% year-over-year revenue decline, according to Tencent's 2018 third-quarter results.

Despite three of Tencent's titles receiving regulatory approval after the freeze, analysts believe the exclusion of the tech giant's most popular fighting game continues to hurt its gaming business.

News of Tencent's restructuring comes shortly after JD.com Inc., another Chinese tech giant, announced plans to lay off 10% of its senior executives earlier this year.

Meanwhile, rival tech company Baidu Inc. revealed an executive retirement plan aimed at reinventing its management team.