The Chinese IT giant Alibaba Group Holding has denied rumors of a possible massive downsizing in the run-up to its IPO. In addition, the company has promised to hire 15,000 new employees in 2023. Previously, there was information in the media about the possible layoff of 7% of the workforce in the cloud department.
Alibaba’s six divisions intend to hire a total of 15,000 employees, including 3,000 recent graduates, Alibaba said. The company states that thousands of job offers can be found on its website every day. Alibaba officials stress that all talks and news on the network are rumors, as every year old employees are laid off and new ones take their place.
Alibaba’s announcement comes after reports that the cloud division, which plans to go public in the next 12 months, will lay off about 1,000 employees, or 7% of Alibaba Cloud’s workforce. However, Chinese companies rarely publicly announce mass layoffs, preferring to refer to them as “business restructuring”.
One way or another, the company’s staff is being reduced. According to the SCMP, December had 235,216 employees, March had lost 4,524, and over the past 12 months, Alibaba’s staff has decreased by 19,725, accounting for 7.7% of the total number of employees.
In March, the tech giant announced its largest corporate reorganization, splitting the single company into six separate companies, each of which can go public. According to the plan announced this month, the company will launch a cloud business for an IPO next year. In the next 6 to 12 months, an IPO of shares in the supermarket chain Freshippo is planned, within 12 months -18 months – Cainiao’s logistics department.
Meanwhile, layoffs continue at other companies. Just recently meta* Platforms has started the latest wave of layoffs. A total of around 10,000 people are to be laid off as part of a three-stage plan.
* It is included in the list of public associations and religious organizations for which the court made a final decision to dissolve or prohibit activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.