Alibaba’s Cloud Arm to Cut 7% of Staff in Overhaul, Sources Say
- China’s largest cloud service has begun offering severance
- Alibaba Cloud will be among the biggest companies spun out
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Alibaba Group Holding Ltd.’s cloud division has begun a round of job cuts that could reduce its staff by about 7%, part of an overhaul aimed at preparing the once fast-growing unit for a spinoff and eventual IPO.
China’s largest cloud service has begun informing affected staff, people familiar with the matter said. It’s offering severance to employees or transfers to other parts of the Alibaba empire, though those aren’t guaranteed, one of the people said. The moves are intended to streamline the business, which Alibaba aims to fully carve out into a separate company within a year, the person said, asking to remain anonymous discussing internal plans.