[Tencent Discusses AI Crisis Again at 28th Anniversary Meeting: Half to Maintain Traditional Businesses, Half to Develop AI-Native Technologies] Beating AI News, November 11th – At an internal all-hands meeting celebrating Tencent's 28th anniversary, Ma Huateng (Pony Ma) proposed accelerating organizational reform. He believes Tencent's transformation is somewhat late, and they can no longer afford to be complacent. Ma Huateng used the analogy of an army and navy: traditional core businesses like games and social media must be maintained, but efficiency must be improved using AI. For example, tasks that previously required everyone can now be completed by half the staff, freeing up the other half to explore AI-native businesses and find new growth points. Ma Huateng's sense of crisis regarding AI has been evident for some time. In January, he emphasized that Tencent's AI strategy should be steady and methodical, with its own pace. In May, he used the analogy of boarding a ship: initially believing they had secured their AI ticket, they later discovered the ship was leaking and had to switch to a new one. He specifically mentioned Google this time. Initially, everyone worried that AI would impact search, but later it seemed Google could withstand the pressure. Looking back this year, he believes "the wave has truly arrived," and traditional businesses like content creation cannot feel safe. Google's search advertising revenue still grew by 12% in the third quarter of this year, but the growth rate has declined from 19% in the first quarter and 17% in the second quarter. Google management admitted that the weaker monetization capabilities of AI Mode are one of the factors slowing revenue growth. While AI brings more and more search volume, a single search may not be as profitable as a traditional search. Tencent launched "Yuanbao Search" on its 28th anniversary, using a large-scale model to revamp the search process and integrating content from WeChat Official Accounts and Video Accounts, aiming to reclaim the search entry point in the AI era. Ma Huateng also spoke strongly to the internal management team this time. Tencent has historically been praised by many employees for its good employee benefits and relatively relaxed work environment. However, Ma Huateng bluntly stated that organizational transformation can no longer be done in the past, requiring employees to be appeased and repeatedly persuaded and negotiated. Some employees even insisted on being offered management positions before participating in new businesses. He demanded a flatter organizational structure, requiring employees to quickly adapt their skills and new roles. He also clearly stated that this reform differed from the "cost reduction and efficiency improvement" efforts of a few years ago. While the focus then was on cost reduction, the current reform aims to change the way the organization and its personnel work, enabling them to operate faster with the existing workforce and allowing small teams to accomplish significant tasks. This speech quickly caused a stir among employees. Rumors circulated on platforms like Maimai and Xiaohongshu, claiming "Tencent is laying off 50% of its staff" and "8,000 people will be laid off." Tencent's PR director, Zhang Jun, subsequently clarified that the 50% figure was merely a metaphor used by Ma Huateng to describe the organizational transformation, not a layoff percentage, and that no announcement had been made regarding the layoff of half the workforce. [Original Link]