Alibaba, China’s largest e-commerce company, laid off 13,000 workers in the first half of the year, including 9,000 in the second quarter alone, Hong Kong’s South China Morning Post (SCMP) reported on the 6th.
It is analyzed that it is the aftermath of the Chinese government’s regulatory pressure on the information technology (IT) sector and the COVID-19 lockdown.
As Alibaba reduced 13,616 people in the first half, the total number of employees as of June 30 was 245,700.
As of the beginning of this year, it is equivalent to a 5% cut in the first half of the year.
“It is the first time since March 2016 that Alibaba’s number of payees has declined,” SCMP said.
Just a year ago, Alibaba increased the number of employees as it expanded its businesses, such as a fresh food mart, Freshippo.
However, the layoffs were carried out due to the continued slowing of consumption due to the continued ‘Zero Corona’ policy and strict regulations by the authorities.
It is known that jobs such as Taobao, Alibaba Cloud, and Dingding were laid off.
Alibaba announced on the 4th that its net profit for the second quarter was 22.74 billion yuan (about 4.37 trillion won), down 50% from the same period last year.
“Alibaba can increase profits by reducing some employees and non-core activities and focusing on its core business,” said Qingyu, an analyst at Kandong Research.
/yunhap news