Business

Alibaba Crisis: Crisis deepens on Chinese company Alibaba, 10000 employees fired

Photo:FILE Alibaba

Highlights

  • Over 9,241 employees left Hangzhou-based Alibaba during June quarter
  • The company reduced its total workforce to 245,700
  • There has been a decrease of 13,616 till June, the first decline since 2016.

Alibaba Crisis:The economic crisis in China is only getting deeper. This crisis started with the real estate business, after the banking sector, now the technology sector is also gripping. The latest news is from China’s giant technology company Alibaba. Chinese tech conglomerate Alibaba has laid off nearly 10,000 employees in an effort to cut spending amid sluggish sales and a slowing economy in the country.

More than 9,241 employees left Hangzhou-based Alibaba during the June quarter, according to the South China Morning Post, as the company reduced its total workforce to 245,700.

Handed pink slip to 13 thousand in 6 months

South China Morning Post owner Alibaba’s workforce decreased by 13,616 in the six months to June, the firm’s first decline since March 2016, the report said.

Company’s income halved

Alibaba reported a 50 percent drop in net income for the June quarter to 22.74 billion yuan ($3.4 billion), from 45.14 billion yuan in the same period last year. Alibaba chairman and CEO Daniel Zhang Yong said the company will add about 6,000 new university graduates to its headcount this year.

Jack Ma will leave Ant Group?

Last month, reports surfaced that billionaire Jack Ma was planning to give up his control of Ant Group amid pressure from government regulators. According to a report in the Wall Street Journal, the move is intended as part of an effort to move away from the fintech giant’s affiliate Alibaba Group Holding, which has been under intense government scrutiny. According to a report in the Wall Street Journal, the move is intended as part of an effort to move away from the fintech giant’s affiliate Alibaba Group Holding, which has been under intense government scrutiny.

Companies targeted by the government

Since last year, Chinese regulatory authorities have been cracking down on domestic tech giants such as Alibaba and Ant Group for ending their dominance in the internet sector. According to the report, Ma may relinquish control by transferring some of his voting power to other Ant executives, including Chief Executive Eric Jing.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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