Alibaba is set to list its cloud computing business for an initial public offering (IPO) and has begun laying off 7 percent of its staff in the division.
Affected employees will be offered a termination package. And Alibaba has already started reporting this to employees. It is also helping employees find other positions within the company if they want.
In the past March Alibaba has announced plans to divide the company into six business units, each with its own CEO and board of directors.
last week Alibaba has revealed its intention to spin off its cloud computing business. and making it an independent company that can be listed on the stock exchange The split will be completed within the next 12 months.
Although cloud computing is seen as an integral part of Alibaba’s future, it is not. But today the cloud business only accounts for 9% of the company’s total revenue. The cloud division’s revenue declined in the past quarter, dropping 2% year over year in Q1 2023.