Chinese internet giant Tencent announced last year that it would fire more than 120 people for violations of its anti-fraud regulations, including corruption and embezzlement.
Tencent, a global video game giant, is a major technology player in China thanks to its WeChat (messaging, online payment, social network) application, which is available on almost all phones in the country.
Tencent founder Pony Ma, who found the level of corruption at his company in 2022 “shocking,” had promised action, state media reported at the time.
In 2023, more than 70 violations of the code of conduct were identified, Tencent noted.
“More than 120 people have been fired from the company” and nearly twenty have been reported to authorities, the group said in a news release issued Friday.
Some of the employees accused of corruption and fired were from the group's PCG division, which is responsible for distributing content (news, sports, movies, etc.).
Others worked in the group's medical services division, where Tencent is a key player in China with its telemedicine applications.
One of the Tencent employees implicated was sentenced to four years in prison and a fine of 100,000 yuan ($18,700), mostly for “misappropriation of property” of the company, according to the press release.
The group currently employs just over 100,000 people.
These announcements come after several difficult years in China for the digital giants.
After rapid growth, the sector saw a sudden power grab by authorities starting in 2020 to further regulate it.
This turnaround caused a loss of billions of dollars in market capitalization and weighed on the results of powerful Internet companies. Tencent was not spared.
Restrictions on online gaming time for under-18s in China have also affected the group's profitability.
Tencent is now looking for further opportunities abroad, particularly in Europe, where the company is strengthening itself by acquiring shares in well-known video game studios.