Alibaba cuts 10,000 jobs to cut costs amid falling sales

Chinese tech conglomerate Ali Baba bid farewell to nearly 10,000 employees in a bid to cut spending amid sluggish sales and a slowing economy in the country, media reported on Saturday.

According to South China Morning Post said more than 9,241 employees left Hangzhou-based Alibaba in the June quarter as the company reduced its overall workforce to 245,700.

This brought the total decline in the number of employees at Alibaba, owner of the South China Morning Post, to 13,616 in the six months to June, marking the company’s first drop in payroll since March. 2016,” the report notes.

Alibaba reported a 50% drop in net profit to 22.74 billion yuan ($3.4 billion) in the June quarter from 45.14 billion yuan in the same period last year.

“The payroll reduction reflects Alibaba’s renewed efforts to cut expenses and increase efficiency as it faces continued regulatory pressure, sluggish consumption and a slowing economy in China. , the world’s largest e-commerce market,” the report notes.

Alibaba Chairman and CEO Daniel Zhang Yong said the company will add nearly 6,000 new college graduates to its workforce this year.

Last month, reports surfaced that the billionaire Jack Ma plans to relinquish its control group of ants under pressure from government regulators.

According to a report by The Wall Street Journal, the move is part of the fintech giant’s effort to move away from its subsidiary Alibaba Group Holding, which has come under intense government scrutiny.

Since last year, Chinese regulators are cracking down harder tech giants like Alibaba and Ant Group to end their dominance in the Internet sector.

According to the report, Ma could relinquish his control by transferring some of his voting rights to other Ant officials, including chief executive Eric Jing.

Ma has controlled Ant since it extracted its precursor assets from Alibaba over a decade ago.

Founded in 1999, Alibaba underwent a major shake-up when Ma handed over as CEO to Daniel Zhang in 2015 and later named him chairman in 2019.