Alibaba is cutting jobs amid IPO plans

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Hong Kong | Chinese Internet giant Alibaba is cutting about 7 percent of its workforce. The company is planning to come out with separate IPOs for different business groups. Alibaba Group planned to split into six business groups and launch separate public listings in March, according to a Nikkei Asia report, prompting massive layoffs.

Now, Alibaba has reportedly begun notifying affected employees in its cloud division about the layoffs.

The company is offering severance packages for the affected employees and also plans to shift some employees to other parts of its business verticals.

Last week, Alibaba CEO Daniel Zhang detailed the reorganization of its cloud division.

Earlier, the Chinese tech giant had said that it plans to split the company into six business units, and each unit will explore fundraising or IPO (initial public offering).

The six units will include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media & Entertainment Group.

Each business unit will be led by its own CEO and board of directors.

In August last year, Alibaba laid off nearly 10,000 workers in an effort to cut costs amid sluggish sales and a slowing economy in the country.

–IANS

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