15:28 - 25.05.2023

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May 25, Fineko/abc.az. Alibaba Group sent notifications to employees of its "cloud" division of Cloud Intelligence Group about the beginning of mass layoffs in preparation for its IPO.

ABC.AZ reports, referring to Bloomberg that the company intends to reduce the number of jobs in the "cloud" business by about 7%, or 1,000 employees.

Alibaba Group offers employees who have fallen under the reduction program either severance pay or work in other divisions, if possible.

Alibaba announced its intention to restructure its business and divide the group into six independent companies back in March. Among the six business groups into which Alibaba plans to split will be Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.

Each division will have the opportunity to raise funds from third-party companies and conduct an IPO. The only exception is division Taobao Tmall Commerce Group, which is responsible for Alibaba's trading business in China, it will remain 100% owned by Alibaba Group. The company announced the approval of IPO Cloud Intelligence last week as part of the presentation of the results for 2023 fiscal year.

After the announcement of the upcoming layoffs, Alibaba shares in New York fell by 3.7% at the end of the trading day.