To reduce costs, Alibaba, the Chinese tech major, has let go almost 10,000 employees. This is the Company’s response to poor sales and the economic slowdown being experienced in China right now. In additional, the Chinese government and regulatory authorities are closely monitoring Chinese tech giants.
The South China Morning Post reports that over 9,000 employees were let go in Hangzhou in the second quarter. On the whole, the Company brought down its workforce size to a about 2,45 lakh.
That means, this year, since January, over 13,000 employees have been laid off.
The Company posted a fall in net income by 50 per cent, compared to last year, that is, it has fallen to about $3.4 billion in the June quarter.
Things have been tough thanks to the COVID-imposed lockdowns and the Ukraine war affecting supply chain only added to the woes of Alibaba’s core e-commerce businesses.
By reducing the headcount, Alibaba is trying to cut costs and ensure more efficiency amidst an economic slowdown and falling consumption levels.
However, the Company still intends to onboard about 6,000 freshers this year.
While Alibaba’s overall business grew by a mere one per cent only, its cloud operation, Alibaba Cloud, made $3.5 billion in revenue. A significant $2.64 million of this, was reportedly spent by customers other than Alibaba’s business units.