Alibaba Group is set to introduce a revised employee-incentive plan starting in April, incorporating a blend of equity and cash. This strategic adjustment aims to enhance the company’s ability to attract and retain talent amid fierce industry competition.
In a company-wide memo to employees, the Hangzhou-based firm outlined these changes, naming it means of “improving the certainty and liquidity” of compensation. The move, it is hoped, will bolster the morale within its 2,00,000-plus workforce.
Commencing 1 April, employees will receive “long-term cash” in addition to stock options. Notably, the stock options will now vest quarterly instead of the previous annual schedule, as detailed in the memo. Despite an email request for comment, Alibaba representatives have not responded.
This initiative arises against the backdrop of Alibaba’s stock nearing historical lows, diminishing its efficacy as a motivational tool. Once valued at over US$800 billion (RM3.75 trillion), the company has grappled with revitalising its businesses amid regulatory scrutiny and an economic downturn.
Recently, the company implemented various measures, including leadership reshuffles, investments in artificial intelligence, and exploration of non-core asset sales, to reignite growth across multiple divisions, from commerce to the cloud.
Recently, Daraz Group, owned by Alibaba, revealed plans for layoffs throughout the company in order to establish a more efficient and adaptable organisational framework. James Dong, acting CEO, Daraz, communicated this decision in an internal memo addressed to employees.
The memo did not specify how many employees would be affected by the layoffs. However, the memo disclosed that a number of employees will be affected in Bangladesh, Nepal, Pakistan, Myanmar and Sri Lanka.
