BackAlibaba refutes job cut rumours, likely to hire 15,000 people this year
Alibaba said that employee departures are part of the normal flow within the company
PremiumAlibaba Group Holding Ltd. has refuted reports of layoffs and instead announced that it is likely to hire around 15,000 people this year.
In a release regarding the same, Alibaba said, its “six major business divisions will need to hire 15,000 new recruits in total, including 3,000 university graduates."
Dismissing the layoffs as mere rumors, Alibaba emphasized that employee departures are part of the normal flow within the company, it said in a statement released on Weibo on Thursday
Alibaba's cloud division is reportedly implementing a round of job cuts, potentially reducing its workforce by around 7%, according to a recent report by Bloomberg News. As it prepares for a spinoff and eventual initial public offering (IPO), the company is offering affected employees severance packages or the opportunity to transfer to other parts of the Alibaba conglomerate.
The e-commerce giant has said it’s pursuing a six-way split of its operations, as it adapts to slower growth under intensified regulatory scrutiny in the Chinese technology industry. Alibaba Cloud, one of the biggest divisions, is joining the Cainiao logistics division and international commerce in pursuing independent fundraising and potential listings.
Chief Executive Officer Daniel Zhang outlined details of the historic shakeup for the first time earlier this month. The group, which doesn’t detail staffing at separate units, employed more than 235,000 people as of March.
Alibaba pointed to its recruiting system as evidence that the company is still hiring. “We have never stopped recruiting and cultivating outstanding talents," the company said in its statement.
Alibaba shares fell about 3% in US trading.
(With inputs from agencies)
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
