Alibaba lays off 1,000 cloud division employees – Kommersant
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Alibaba Group has sent notices to employees of its cloud division Cloud Intelligence Group about the start of massive layoffs in preparation for its IPO. This, citing several sources, reports Bloomberg. The company intends to cut the number of jobs in the “cloud” business by about 7%, or 1 thousand. According to the agency, Alibaba Group offers employees who fall under the reduction program either severance pay or work in other divisions, if possible.
On the intention to restructure its business and split the group into six independent Alibaba companies informed back in March. The six business groups Alibaba plans to split into include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media, and Entertainment Group.
Each division will have the opportunity to raise funds from third-party companies and conduct an IPO. The only exception is Taobao Tmall Commerce Group, which is responsible for Alibaba’s China trading business, which will remain 100% owned by Alibaba Group. On the approval of the Cloud Intelligence IPO, the company reported last week as part of the presentation of results for fiscal year 2023.
After the announcement of impending staff cuts, Alibaba shares in New York fell 3.7% on the trading day.
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