Alibaba cloud unit trims workforce ahead of IPO preparations. Alibaba Group holding's cloud division is implementing a workforce reduction, affecting around 7% of employees in its cloud unit. This streamlining effort aligns with the company's plans for an upcoming Initial Public Offering (IPO). As part of the downsizing process, the cloud unit has initiated severance packages for affected staff. Alibaba recently revealed intentions to list and raise funds for several business units, including its logistics division, Cainiao.
The move follows Alibaba's earlier announcement of a restructuring strategy in response to regulatory changes in China's technology sector. In the last quarter, Alibaba's cloud division reported a revenue of 18.6 billion yuan ($2.69 billion), a slight decline compared to the same period last year. Notably, other prominent tech companies like Google, Amazon, Meta, and Twitter have also conducted layoffs as part of their cost-cutting measures and restructuring efforts.
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