China-based Shanda Literature announced an adjustment to its Cloudary in which the company will divest its content and hardware businesses.

After the adjustment, Cloudary will still be responsible for Shanda’s Bambook e-reader. However, the Cloudary app will be integrated with that of Qidian.com, another Internet literature branch of Shanda Literature. This adjustment aims to solve the resource redundancy problems of the two parties.

During this adjustment, nearly 40 employees will depart the company, including vice president of Shanda Literature and head of Cloudary Liu Qiang. Before the adjustment, Cloudary had about 90 employees and about 35 of them will lose their jobs over the changes.

Established in 2010, Cloudary mainly executes Shanda Literature’s e-book strategy and its contents are from various Internet literature websites under Shanda Literature. In 2012, Cloudary started independent operations away from other businesses of Shanda Literature.

Cloudary has reportedly built a new leadership group and Shanda Literature will soon launch new products and applications on mobile devices after the integration.