Alibaba Cloud to make significant job cuts amid IPO plans

HONG KONG: Chinese internet giant Alibaba is making significant job cuts in its Cloud unit, reportedly around 7 per cent of its workforce, as it plans separate IPOs for its various business groups.

In March, Alibaba Group planned to split into six business groups and launch separate public listings, triggering mass layoff, according to a Nikkei Asia report.

Now, Alibaba has reportedly begun informing affected staff in its Cloud division about layoffs.

The company is offering severance packages to the impacted employees and also plans to transfer some workers to other parts of its business verticals. Alibaba employed over 235,000 people (as of March).

Last week, Alibaba CEO Daniel Zhang had detailed the restructuring of its Cloud division.