Alibaba Group Holding reduced its workforce by about 19,000 employees in response to the global economic downturn. Cost effectiveness is given priority in the decision. Alibaba made intentions to take a more cautious approach to spending and cut costs where they don’t have a long-term benefit in May.
This change, which is in line with Beijing’s policies, marks a substantial departure from the company’s prior strategy of swiftly expanding into new markets. According to reports, the company’s expansion has been hampered by the state of the global economy, China’s rigorous Covid Zero strategy, lockdowns that limited consumer spending, and other factors.
According to a Bloomberg report, the Hangzhou-based online retailer laid off more than 4,000 employees in the last quarter of the year, as shown in its earnings report that was made public on Thursday. When the company first saw a drop in revenue during the summer, the most significant job layoffs took place.
Alibaba is still one of the largest private employers in China, despite having reduced its workforce to 239,740 employees, according to its latest report. The company announced earnings and profits that were higher than average analyst expectations, which led to a surge in the stock price.
Alibaba, however, increased the number of job layoffs it made in December compared to September, indicating that it is still adjusting to a slower economy despite early signs of recovery.