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The9 Lays Off Staff from Beijing Subsidiary

Sina Tech, 6/22/09

Lin Fumin, Beijing subsidiary manager and vice-president at online game developer and operator The9 (Nasdaq: NCTY), has confirmed Sina Tech's earlier news report that the company is restructuring its Beijing offices, with many employees formally laid off on the afternoon of June 22. Lin, however, would not comment on whether he would remain, only saying that after he finishes assisting headquarters with personnel changes, he will take a break. He also added that closing the Beijing branch was part of a strategic plan involving The9's need to find new projects for it's former World of Warcraft staff.

The9's Beijing office had over 80 people, whose main responsibilities were operating licensed casual soccer game FIFA Online 2 and 3D turn-based MMORPG Atlantica. FIFA Online 2 was recently transferred to The9's Shanghai headquarters, and Atlantica will follow after the Beijing reshuffle.

Editor's Note: An official statement from The9 denies that the company is shutting down its offices in Beijing, but Netease Tech has confirmed from numerous sources that the company laid off more than 80 employees on June 22, equal to the entire staff. Meanwhile Shanghai headquarters has also reportedly pressured Lin Fumin to "keep his mouth shut."

Netease Tech emailed Lin, who denied he gave any interview or that there was any statement about a strategic plan, and that any questions should be directed at the company's spokespeople. Some Beijing employees told Netease Tech that Shanghai gave clear instructions not to speak to the press. One former staff member of the World of Warcraft customer service department in Shanghai also said that some 400-500 employees, or 40% of the workforce, were recently asked to sign auto-resignation forms.

Keywords: Lin Fumin HR Atlantica FIFA Online 2 Internet MMORPG NCTY corporate restructuring The9 online gaming WoW

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