Pony Ma stated that Tencent's transformation is already late, with half of the people sticking to the old business and the other half working on AI

At Tencent's internal all-staff meeting celebrating its 28th anniversary, Ma Huateng proposed to accelerate organizational transformation. He believes that Tencent's transformation is somewhat late and cannot leisurely feel secure anymore. Ma Huateng compared it to the army and navy, stating that traditional core businesses like gaming and social networking must be maintained, but efficiency should be improved using AI. For example, tasks that originally required everyone can now be completed by half the staff, freeing up the other half to explore AI-native businesses and seek new growth points.

Ma Huateng's previous statements regarding AI have been traceable. In January of this year, he emphasized that Tencent's approach to AI should be steady and methodical; in May, he made a ship analogy, saying that he initially thought they had secured a ticket for the AI ship, only to later find that the ship was leaking and they had to switch to another one. He specifically mentioned Google, noting that initially, everyone was worried about AI impacting search, but later it seemed that Google could withstand it. However, looking at this year, "the wave has really come," and traditional businesses like content cannot feel secure either. Google's search advertising revenue still grew by 12% in the third quarter of this year, but the growth rate has continuously declined from 19% in the first quarter and 17% in the second quarter, with management admitting that the commercial monetization capability of AI Mode is weak. On the day of its 28th anniversary, Tencent launched "Yuanbao Search," which reworks the search process using large models and integrates content from public accounts and video accounts.

Ma Huateng also told the internal management that organizational transformation can no longer be about coddling employees, repeatedly persuading them, and negotiating terms. Some people even want to negotiate management positions before they are willing to participate in new businesses. He demanded a flatter organization, where employees must quickly adapt their skills to new positions, stating that this reform is different from the "cost reduction and efficiency increase" of a few years ago, which mainly focused on cutting costs. Now, it is about changing the way the organization and personnel work, running faster with the existing manpower, and enabling small teams to accomplish big things. Related speeches subsequently sparked discussions in employee communities, with rumors of "Tencent laying off 50%" and "laying off 8,000 people" appearing on platforms like Maimai and Xiaohongshu. Tencent's PR Director Zhang Jun clarified that the so-called 50% was merely a metaphor used by Ma Huateng for organizational transformation and not the layoff ratio, nor has there been any announcement of cutting half the staff.