Alibaba Group Holding Limited has reportedly cut jobs at an intense pace in the June quarter to keep a tight check on costs amid a bitter economic environment. The company let go of 9,241 employees, representing 3.6% of its workforce.
In the year-to-date period, the company shed 13,616 jobs, marking the first drop in payrolls since March 2016. The layoff comes amid the Chinese e-commerce giant’s efforts to reduce expenses and improve efficiency.
Cheng Yu, a researcher at the Beijing Kandong Research Institute said that the job cuts and exiting of non-core activities will likely sharpen the company’s focus on its core businesses and prop up profit margins.
Alibaba has been on the radar of Chinese regulators since late 2020 and had to experience several disciplinary actions, including the imposition of a hefty fine. The COVID pandemic and the economic slowdown that followed had aggravated the situation further.
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