Once a rising star in Amazon's marketplace, the gaming peripheral company now struggles with financial turmoil and disgruntled former staff.
From Amazon Success Story to Financial Crisis
Black Shark Technology, a Chinese gaming hardware specialist that gained prominence through Amazon's North American marketplace, now faces severe financial difficulties. The company, known for its gaming headsets, mechanical keyboards, and gaming smartphones, previously boasted impressive sales figures - including one Bluetooth headset model with over 5,000 ratings that topped its category.
However, behind these marketplace achievements lay growing operational challenges. The company's rapid expansion appears to have outpaced its financial management capabilities, setting the stage for its current crisis.
Mass Layoffs Shrink Workforce by 90%
Black Shark's downsizing occurred in multiple waves, reducing its workforce from over 1,000 employees in August 2022 to approximately 100 staff today. The cuts affected nearly all departments, leaving only skeleton crews in internet operations and administrative functions. The company's Shanghai office, once a bustling R&D center, now stands largely empty after terminating its lease.
Broken Promises Leave Employees in Financial Distress
Former employees report that promised severance payments have failed to materialize as agreed. While the company committed to installment payments with specific deadlines, most workers have received only 2,000 yuan ($280) as a token payment - far below their contractual entitlements.
"Please pay our compensation, we have no money for the New Year," pleaded one former employee. A three-year veteran of the R&D department claimed he's owed over 100,000 yuan ($14,000) in severance but received only the minimal 2,000 yuan payment.
Company Response Fails to Assure Workers
In internal communications, Black Shark management acknowledged "significant operational difficulties" and pledged to resolve compensation issues. However, employees remain skeptical, particularly after learning that Shanghai-based staff laid off last year were promised six installment payments, with no guarantee of full fulfillment.
Asset Transfer Rumors Fuel "Runaway" Fears
The closure of Black Shark's Shanghai R&D center has sparked concerns about potential asset transfers. Former employees worry the company may be positioning itself to avoid financial obligations entirely. "We've received no updates, and the January 10 payment deadline passed without action," one former staff member reported.
Industry Lessons in Growth Management
Black Shark's troubles highlight the dangers of uncontrolled expansion without proper financial safeguards. The situation serves as a cautionary tale for both companies pursuing aggressive growth strategies and professionals evaluating employment opportunities in high-risk tech ventures.
As the situation develops, attention remains focused on whether Black Shark will fulfill its obligations to former employees and what implications this case may hold for China's competitive gaming hardware sector.