Alibaba Group Holding Ltd., the Chinese e-commerce giant, has denied rumors of impending layoffs and instead announced its intention to hire approximately 15,000 people in 2023. In a statement released on Weibo, Alibaba clarified that employee departures are part of the normal flow within the company and dismissed the layoff reports as mere speculation.
According to Alibaba, the recruitment drive will focus on its six major business divisions, with a total of 15,000 new hires anticipated, including 3,000 university graduates. The company emphasized its ongoing commitment to recruiting and cultivating outstanding talent, citing its robust recruiting system as evidence of its continued hiring efforts.
However, recent reports suggest that Alibaba’s cloud division is implementing a round of job cuts, potentially reducing its workforce by around 7%. This move is believed to be a result of the division’s preparation for a spinoff and eventual initial public offering (IPO). Impacted employees are being offered severance packages or the option to transfer to other parts of the Alibaba conglomerate. Alibaba’s cloud division is one of the largest within the company and is now set to pursue independent fundraising and potential listings, along with the Cainiao logistics division and international commerce.
The decision to split its operations into six separate divisions comes as Alibaba adapts to slower growth and increased regulatory scrutiny in the Chinese technology industry. Chief Executive Officer Daniel Zhang revealed the details of this historic shakeup earlier this month. While specific staffing numbers for each unit are not disclosed, Alibaba had over 235,000 employees as of March.
Despite the mixed reports regarding layoffs and restructuring, the news of Alibaba’s recruitment plans signals its ongoing commitment to maintaining a strong workforce. Nevertheless, the uncertainty surrounding the company’s operations has led to a decline in Alibaba shares, which fell approximately 3% in US trading.
In summary, Alibaba has refuted reports of layoffs, highlighting its intention to hire 15,000 employees this year, including fresh graduates. The company maintains that employee departures are a normal occurrence and emphasizes its continuous recruitment efforts. However, restructuring measures and job cuts within the cloud division suggest changes are underway as Alibaba adapts to regulatory challenges and prepares for potential spinoffs and IPOs.