Rumor: Renren Shuts Down Mobile Projects
China Business News, 5/13/13
According to industry sources, Beijing-based social networking site operator Renren (NYSE: RENN) is planning large-scale layoffs at its wireless services division. Renren has since denied the layoff rumors. "The adjustments to the wireless business are part of an internal experiment with innovative structures," a Renren spokesperson said, adding that "some employees will be affected."
A senior Renren executive confirmed that the "adjustments" center around the company's wireless business division and its subsidiary 3G division. Some employees of the 3G division have been transferred within the company to divisions such as Renren Games and group buy site Nuomi.com. Others have opted to leave the company.
"Renren originally launched a number of app projects in an effort to shift the center of gravity of its strategy and investments towards the mobile internet," the executive said. Many of these projects are still in the incubation stage, and have missed their opportunities given the rapid pace of mobile internet development, leaving Renren with no choice but to shut them down.
Keywords: strategy wireless Renren mobile Internet RENN SNS HR
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