Alibaba lays off: China(China)of the technology giant group Alibaba (Alibaba)Sluggish sales and sluggish economy in that country(Economy) In the meantime, about 10,000 employees have been laid off in an effort to cut costs. This information has been given in the media report. More than 9,241 employees left Hangzhou-based Alibaba during the June quarter as the company cut its total workforce to 2,45,700, according to the South China Morning Post. On the other hand, reports are emerging that Jack Ma is planning to relinquish his control of Ant Group amid pressure from government regulators.
By June, the number of employees was reduced by more than 13,000
According to the report, Alibaba, the owner of the South China Morning Post, has cut its workforce by 13,616 in the last six months to June, the firm’s first reduction since March 2016. However, Alibaba chairman and CEO Daniel Zhang Yong said the company will add about 6,000 new university graduates to its headcount this year.
Alibaba’s June quarter earnings drop by $3.4 billion
Alibaba reported a 50 percent drop in net income to 22.74 billion yuan ($3.4 billion) in the June quarter, from 45.14 billion yuan in the same period last year. Business activities in China are being adversely affected and its impact is also being seen on Alibaba’s business.
Jack Ma is planning to leave the group
Reports emerged last month that billionaire Jack Ma was planning to relinquish his control of Ant Group amid pressure from government regulators. According to a report in the Wall Street Journal, the move is part of the fintech giant’s effort to distance itself from affiliate Alibaba Group Holding. Which is under strict government scrutiny.
Regulators are cracking down
Since last year, Chinese regulators have been cracking down on local tech giants like Alibaba and Ant Group to end their dominance in the internet sector. Jack Ma may relinquish control by transferring some of his voting power to other Ant executives, including Chief Executive Eric Jing, according to the report. Alibaba, founded in 1999, underwent major changes when Jack Ma selected Daniel Zhang as CEO in 2015 and appointed him as chairman in 2019.
. Source