According to the South China Morning Post, insiders have revealed that the cloud computing department controlled by e-commerce giant Alibaba Group is preparing for an initial public offering in the next 12 months. Alibaba has already laid off thousands of employees, accounting for 7% of the total number of employees. Alibaba did not publicly comment on its layoff plan, nor did it immediately respond to requests for comment. In the past few months, Alibaba has been reducing employee salaries. According to its first quarter report, as of the end of March, the number of employees decreased by 4524 from December to 235216. Alibaba has reduced 19725 full-time employees in the past 12 months, accounting for 7.7% of the company’s total workforce.
Chinese technology companies rarely publicly announce layoffs, often referred to as business restructuring. Alibaba did not disclose the salary scales of various business departments, including its cloud computing department. People familiar with the decision said that according to the requirements of China’s labor law, Alibaba will provide an additional two months of salary for employees who leave within a month. Cloud services have always been a promising growth area for the company, but in the first quarter, Alibaba’s cloud computing revenue decreased by 2% year-on-year to 18.6 billion yuan (2.6 billion US dollars), accounting for 9% of the group’s total revenue. In a plan announced this month, Alibaba will spin off its cloud computing department by distributing stock dividends to shareholders at some point next year, making it an independent listed company.
Post time: Jun-28-2023