TikTok owner ByteDance is reportedly downsizing its video game business in a move that has resulted in hundreds of layoffs.

According to the South China Morning Post (SCMP), the Beijing-based company has laid off or transferred the majority of workers from its Wushuang Studio in Shanghai, with that move coming just months after the closure of its 101 Studio in June. ByteDance has also reportedly cut jobs at its Jiangnan Studio in Hangzhou.

The SCMP claims to have spoken with people familiar with ByteDance's plans, who said that while the gaming business will remain operational in order to support certain products, significant cuts are being made.

If the report is accurate, it'd be a notable change in direction for a company that was recently spending big to expand its video game business, purchasing studios including Moonton Technology and C4 Games.

The Chinese video game market is facing a moment of regulatory upheaval, with officials in the region proposing new playtime and spending restrictions that will impact how young people can engage with games.

ByteDance declined to comment on the situation when contacted by SCMP.