Alibaba Continues Organizational Restructuring, Global Diversification To Beat Regulatory Crackdown Blues

Alibaba Group Holding Limited BABA continues its restructuring activities as planned and international diversification amid the uncertain domestic regulatory environment.

Alibaba's intelligent mobile office platform DingTalk has adjusted its organization and personnel, with a layoff proportion of 30%, the Pandaily reports.

The Alibaba unit focused on PaaS (platform-as-a-service), maintaining its positioning as a collaborative office and application development platform, and strategically invested in essential products like documents, audio, video, projects, and conferences.

DingTalk had conducted so-called organizational optimizations involving a routine fiscal year performance appraisal replacement and business adjustment. 

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

Alibaba's division abandoned some modules with reduced business weight. The teams involved have previously invested heavily in independently-developed SaaS and hardware.

Based on a source, the overall adjustment ratio was less than 10% of staff.

The proportion of merit pay replacement usually ranged between 4% - 10%, versus ~6% this year, including some natural departures.

Alibaba Cloud launched its first data center in Thailand to capitalize on the country's cloud market and support the nation's 20-year strategic plan, the Bangkok Post reports.

The outlay also covers equipment, technology, business partnership, and skill-building for workforces and localized solutions. Alibaba Cloud aims to build cloud skills for 20,000 people.

The cloud market will likely reach $2.4 billion by 2025, with projected growth of over 40% every year from 2022.

Alibaba Cloud (Thailand) has a registered capital of 1.06 billion baht. In 2021, Alibaba Cloud became the third-largest IaaS provider and the biggest in Asia-Pacific by revenue.

Price Action: BABA shares traded higher by 7.13% at $86.88 on the last check Friday.

Photo by Fooksou Lamimo via Wikimedia Commons