Perfect time, massive layoffs

Turn the hand for the cloud, covering the hand for the rain. This is the Internet world.

In this sentence, the landing of Nasdaq in China's online game development and operators perfect time and Space (NASDAQ:PWRD), is very accurate.

Not long ago, there are a lot of staff complaints, perfect time and Space channel Promotion Department is still large-scale expansion, and thereafter also received 200,000 Yuan reward performance outstanding employees promise. By the end of May, however, it was the news that more than 2000 people had been laid off by lightning to lay off more than 80%. There is a point of view that the online games industry has entered a new round of adjustment period, perfect time and space layoffs will inevitably. The massive layoffs before the end of May may be a way to gloss over their performance.

In the first quarter of 2010, the perfect time and space, NetEase, Shanda and other online games listed company's earnings figures coincide with the growth slowdown, profit margins decline, causing its share price plunge. Among them, perfect time and space in the first quarter of quarter-on-quarter growth than market expectations, the reduction of the two quarter of the revenue and profit expectations, so that investors sell a lot of perfect time and space stocks, a day plunged 25%.

This year, the shares of NetEase, perfect time and space in the US listed fell 23%, 35% and 18% respectively.

Irregular layoffs 80%

Falling performance and plummeting share prices have led to frantic layoffs.

Work in a domestic large-scale online game company insiders told The Times weekly Reporter: "Layoffs are more reliable, perfect time and space Chairman Chi to all the senior executives sent an e-mail, I hope you save expenses." ”

Perfect Space-Time Jilin Province Yanji office staff Chen told Times Weekly reporter, May 31 afternoon, in the absence of any written notice of the situation, the perfect time and space national channel Promotion department staff were cut 80%, severance pay up to only 1300 yuan. This has led to accusations by the people, including Chen.

"Perfect time and space did not give any explanation, is to call to tell us not to go to work." Chen told reporters.

After the Spring Festival in 2010, the perfect Time Channel Promotion Department has also carried out large-scale expansion nationwide, the number of promotion team in a short period of twice times more. "Such a huge promotion team, in the National Network game Promotion industry quickly formed an overwhelming advantage." Perfect time and space and by virtue of its strong local resources, firmly control the market. "Perfect Time" Guangdong Foshan resigned staff Liu Shiliang that the promotion staff for the company made a great contribution.

Subsequently, the perfect time and space decision to the Channel Promotion department to allocate 200,000 yuan bonus as the performance outstanding staff reward. This measure, the Channel Promotion Department staff are all excited, all in the work of life.

May 10, 2010, the perfect Space-Time channel Promotion Department new Automated Office (OA) system began to test run. Ministry of Promotion of the national staff to take half a month, the collection and collation of the country about 40,000 internet cafes data, and input to the new OA system.

May 31, the perfect time and space national promotion staff ushered in is not 200,000 yuan bonus, but layoffs.

Many resigned employees to the Times weekly reporter said: "If it is normal layoffs, but there is nothing, but perfect time and space first said there are 200,000 yuan reward, encourage us to help them to create the final performance, and then bridges, is obviously xiemoshalv." ”

The quarterly bulletin has slipped slightly.

Facing the accusation of the staff, June 4, the perfect time and space release Bulletin said: "The company is currently in the channel system optimization, the purpose is to rationally deploy resources, the implementation of system management, better service for the players." At present, the company's channel promotion staff throughout the country more than 240 cities, individual city personnel adjustment is a normal category. ”

Perfect space-time president Zhouqi to Times weekly reporter said: "At present the domestic net swims the concept unit maintains the growth mainly relies on the new product, the perfect space-time is expected to launch" The God Demon Mainland "at the end of September this year, the October end launches" The Dragon Sword ". And its heavy to build the first 3D new version of the martial arts games "Smile Proud" will be officially launched in the second quarter of next year. ”

In the eyes of analysts, the perfect time and space since the inception is to rely on the continuous development of new online games to grow up. However, in the fourth quarter of 2009, after the launch of the "dream of the Fairy", until this September, perfect time and space there is no new product release. and easy to view the online version of the think-tank monitoring to "dream of the Fairy" performance decline seriously. Analysys International Online games analyst Yuyi that the perfect time and space layoffs are mainly due to the "dream of the immortal" extension of the expansion of the game and update the adverse contradictions, as well as subsequent new products need a longer time to market cost considerations.

There is a point of view that the perfect time for the mass layoffs at the end of May, perhaps to create a bright earnings figures.

The first-quarter results of perfect space-time showed that the total revenue was 625 million yuan (about 91.6 million U.S. dollars), but not up to market expectations. Average user earnings (ACU) fell 14% in the first quarter of this year, with a 13.4% per cent drop in its main revenue overseas mandate.

Perfect Time Company CFO Liu Yongki in the earnings call, admitted that the first quarter ACU decline is mainly because of "dream of the Fairy" ACU decline. Perfect time and space CEO Chi also publicly said, "dream of the Fairy" is a 2D game, developed by the new team, perfect time and space in quality testing slightly relaxed a little strict, so the game in the upgrade several times a bug (program error).

First-quarter results are not ideal, leading to perfect time and space. Second-quarter revenue and profit forecasts: Operating income is expected to be 594 million to 625 million yuan in the second quarter of 2010. The expected range rose 14% to 20% from a year earlier, flat or slightly lower than in the first quarter.

However, the internal structure of perfect space-time has a destabilizing factor. According to the source said: "Perfect time and space responsible for the game's general manager Chen has proposed to leave, will be a company's vice president; the Director of the value-added Division has also proposed to resign, the choice of entrepreneurship. ”

Eric Consulting analyst Chaofeng to Times weekly reporter said: "Perfect time and space before the rapid expansion of the people have a lot of demand, to a certain extent, will face the problem of excessive number of low-end promotion staff." And layoffs are more than perfect, a lot of game companies have a large-scale reduction of the precedent of the promotion staff, this is the industry's development must pass the stage. ”

In fact, in the first echelon of the enterprise, different degrees will meet the problem of sustainable growth. This is not difficult to explain such as perfect time and space, swimming and so on after the growth of the game companies in the peak, now facing the problem of low growth, perfect time and space is taking other companies have experienced setbacks, so they must have some measures to adjust, otherwise certainly face the pressure of capital markets. "One of the largest online games companies in the industry, said reporters.

Reporter interviewed a number of online games industry insiders and online analysts, they all said: Online games industry has entered the adjustment period, the myth of high growth is not reproduced. Over 40% per cent of the high growth period is over, and it is now expected to grow by about 30% per cent.

Eric reported that in the next few years, the online games industry market growth will slow, is expected to 2013 years ago, the annual growth rate will be around 20%, the possibility of a second surge is not, by 2013, the entire industry will reach 58.5 billion yuan income.