To adjust to the global economic downturn, Alibaba Group Holding, downsized its workforce by approximately 19,000 workers. The decision comes with an aim to prioritise cost efficiency.
In May, Alibaba announced plans to adopt a more measured approach to spending and to reduce expenses in areas that do not provide long-term benefits. This change aligns with Beijing’s policies and represents a significant departure from the company’s previous strategy of aggressively expanding into various markets.
Reportedly, the global economic conditions and China’s strict Covid Zero strategy, along with lockdowns that reduced consumer spending, have hindered the company’s growth.
As per a Bloomberg report, the online retailer, headquartered in Hangzhou, terminated over 4,000 employees in the last quarter of the year, as indicated in its earnings report released on Thursday. The most significant job cuts took place during the summer when the company experienced a decline in revenue for the first time.
Despite reducing its workforce to 239,740 employees according to its latest report, Alibaba remains one of the largest private employers in China. The company announced earnings and profits that exceeded the average expectations of analysts, causing a surge in its stock value. However, despite signs of economic recovery, Alibaba increased its job cuts in December compared to September, indicating that it is still adapting to a slower economy.
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