In the latest round of technology layoffs, Alibaba pruning is here. According to a report, Alibaba Group Holding Limited is going to lay off about 7 percent of its workforce earlier this week.
According to a Bloomberg report, Alibaba’s layoffs are set to affect employees in the tech giant’s cloud division. These layoffs, if planned, will affect 7 percent of Alibaba’s total workforce.
The report added that Alibaba’s layoff move forms part of a comprehensive restructuring strategy designed to position divisions for faster growth. The idea is to aim for an independent spinoff of categories, which could eventually become an initial public offering (IPO).
While Alibaba’s layoffs affect about 7 percent of employees, many will leave without jobs. According to the report, the company has reportedly started informing and communicating with employees about the layoffs.
However, Alibaba’s layoffs lead to a scenario where the company is either giving people the option of accepting a separation package or transferring to another department. But even the latter is only being given to a few.
With the Alibaba layoffs, the company plans to streamline its cloud services business as the company looks to establish it as a standalone entity in the near future. However, it must be noted that the exact number of employees affected by these layoffs is not yet known.
