alibaba: Alibaba is laying off nearly 10,000 employees due to poor sales

Chinese tech conglomerate Alibaba said goodbye to nearly 10,000 employees in an effort to cut spending due to slowing sales and the slowing economy in the country, media reports reported.

According to the South China Morning Post, more than 9,241 employees left Hangzhou-based Alibaba during the June quarter as the company reduced its overall headcount to 245,700.

“This brought the total decrease in employee numbers for Alibaba, owner of the South China Morning Post, to 13,616 in the six months to June, marking the first decline in the company’s staff size since March 2016,” the report noted.

Alibaba reported a 50% decline in net profit to 22.74 billion yuan ($ 3.4 billion) in the June quarter, down from 45.14 billion yuan in the same period last year.

“The staff reduction reflects Alibaba’s renewed efforts to cut spending and increase efficiency as it faces continued regulatory pressures, slow consumption and a slowing economy in China, the largest e-commerce market in the country. world, “notes the report.

Alibaba president and CEO Daniel Zhang Yong said the company will add nearly 6,000 recent graduates to its staff this year.

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Last month, reports surfaced that billionaire Jack Ma is planning to relinquish control of Ant Group amid pressure from government regulators.

According to a report by the Wall Street Journal, the move is aimed at part of the fintech giant’s effort to move away from affiliate Alibaba Group Holding, which is under immense control by the government.

Since last year, Chinese regulators have cracked down harder on domestic tech giants like Alibaba and Ant Group to end their dominance in the internet industry.

According to the report, Ma may relinquish his control by transferring some of his voting power to other Ant officials, including CEO Eric Jing.

But it has controlled Ant since it got its precursor assets from Alibaba more than ten years ago.

Founded in 1999, Alibaba underwent a major reshuffle when Ma passed the baton as CEO to Daniel Zhang in 2015 and named him President in 2019.

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