The Chinese e-commerce giant Alibaba Group laid off 9,241 employees in the three months to June, the company’s latest filings show, according to Bloomberg.
The Hangzhou-based company said it had just over 245,000 employees at the end of the last reporting quarter, downsizing during a period that was its first-ever revenue contraction.
Alibaba also reduced its workforce in the first three months of the year by 4,375, reflecting widespread moves among global tech companies to rein in spending at a time of rising inflation, material costs and political tensions.
US companies such as Apple, Alphabet and Meta Platforms have cooled hiring, while Amazon, Lee’s closest counterpart, has shed about 100,000 jobs. SoftBank Group, Alibaba’s largest shareholder and among the world’s most generous spenders of venture capital (VC), pledged this week to implement sweeping cost-cutting measures that will significantly impact headcount.
The Chinese e-commerce giant, once the most valuable company in China, has seen its market value plummet after Beijing launched its all-out crackdown on the private sector more than a year ago. The government forced its financial subsidiary, Ant Group, to cancel what would have been the world’s largest initial public offering (IPO) in 2020, then launched reforms that undermined Alibaba’s business model.
Abroad, the United States has added Alibaba to a growing list of companies facing removal from US exchanges due to Beijing’s refusal to allow US officials to review the work of their auditors. The company is seeking a primary listing in Hong Kong that would enable it to tap into more mainland investors, while also maintaining its listing status on the New York Stock Exchange.