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The Alibaba Cloud Computing Unit Is Going Through a Round of Layoffs in an Attempt to Cut Costs Before Its Initial Public Offering.
According to a source close to the matter, Alibaba’s cloud computing unit will lay off 7% of its staff. This decision includes a voluntary resignation plan for many of its employees.
Alibaba is a Chinese giant that has announced plans for listing and fundraising for some of its business units, including Cainiao, its logistics unit. As part of these plans, China’s largest cloud computing service is expected to be listed on the stock exchange next year. Unfortunately, this initial public offering may negatively impact many of the company’s employees.
According to reports, this round of layoffs started due to the Alibaba cloud computing unit’s need to cut costs. In the last quarter, Alibaba’s cloud computing division reported a 2% decline year-over-year, with revenue of 18.6 billion yuan (US$ 2.69 billion, R$ 13.3 billion).
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But How Will the Layoff Affect Employees?
Although the mass layoff of Alibaba’s cloud computing unit may be beneficial for the company, and is likely necessary, it will have a devastating effect on the employees who will be let go. The layoffs will not only affect employees’ professional status but also their financial and emotional stability.
The Role of Alibaba
Unfortunately, Alibaba has not disclosed the details of its voluntary resignation plan, but the company needs to ensure that these employees have all the necessary support to find new jobs and explore new opportunities. Alibaba’s management needs to help prepare employees for recruitment processes and, if possible, provide financial assistance to those who have been laid off.
