Tech Layoffs – The cloud branch of Alibaba Group Holding, which provides online computing and storage services, is reducing its employees. The most recent round of layoffs will affect around 7% of its personnel working in the cloud unit. The corporation is streamlining its operations in preparation for an Initial Public Offering (IPO).
According to Reuters, the cloud unit has begun issuing severance payouts to affected staff as part of the downsizing process.
Recently, the Chinese digital behemoth revealed plans to sell and seek capital for four of its business units, including its logistics division, Cainiao. In keeping with these goals, Alibaba’s largest cloud service will become public next year.
This news follows Alibaba’s earlier disclosure this year about its restructuring strategy. Following a two-year regulatory onslaught on China’s technology sector, the business plans to separate itself into six distinct units.
Alibaba’s cloud segment earned 18.6 billion yuan ($2.69 billion) in the most recent quarter. This statistic, however, indicates a 2% decrease from the same period previous year.