Alibaba Looks To Slash Workforce By 30% After Its MMC Division Decides To Lay off 20% Employees

Alibaba Group Holding Ltd BABA and Tencent Holdings Ltd TCEHY employees saw a job cut of 30%, the Print reports as per speculation on Weibo Corp WB.
Internal speculation among employees was that Alibaba looked to lay off 30% of its employees while Tencent between 10% - 30% of its employees.
Tencent started layoffs within small business departments in September 2021.
Alibaba's community group-buying business unit MMC aimed to lay off ~20% of its employees, iQIYI Inc IQ looked to relieve 20% - 40% of its workforce, Kuaishou Technology KUASF 30% of its staff.
The layoffs came amid an ongoing crackdown on tech in Beijing.
The rising crude oil prices and hurdles in developing the Belt and Road Initiative (BRI) could hamper China's 2022 GDP growth target of 5.5% for GDP growth (8.1% in 2021), which is the lowest in decades.
China grew by only 2.3%, the lowest economic growth in four decades as the second-biggest economy battled a slowdown due to a slump in manufacturing, real estate, exports, inflation, and consumer spending, with a possible headwind from the ongoing Ukraine crisis. China also battled rising unemployment woes.
Price Action: BABA shares traded higher by 19.50% at $91.70 premarket on the last check Wednesday.
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