Alibaba Hiring 15,000 Employees, Denies Layoff Reports
30 May 2023
Alibaba Plans to Hire 15,000 Employees, Denying Layoff Reports: Trade Suggestion and Analysis.
Alibaba Group Holding Ltd. has announced plans to hire 15,000 new employees this year, refuting recent reports of layoffs within the Chinese tech firm. The company addressed the issue through a statement released on Weibo, stating that its “six major business divisions will need to hire 15,000 new recruits in total.” Among the new hires, Alibaba intends to recruit 3,000 university graduates. The company emphasized that rumors of layoffs were unfounded and clarified that employee departures are part of the normal turnover process.
However, Alibaba’s cloud division has reportedly initiated a round of job cuts, with the potential to reduce its workforce by approximately 7%. According to Bloomberg News, the company is offering severance packages or transfers to other areas within the Alibaba conglomerate. These measures are being taken in preparation for a spinoff and eventual initial public offering of the fast-growing cloud unit.
Amidst increased regulatory scrutiny in the Chinese technology industry, Alibaba has announced plans to split its operations into six distinct divisions. The e-commerce giant’s cloud division, Cainiao logistics division, and international commerce division are pursuing independent fundraising and potential listings. This strategic move is aimed at adapting to slower growth and complying with regulatory requirements.
CEO Daniel Zhang provided further details regarding the restructuring earlier this month. While specific staffing figures for individual units were not disclosed, Alibaba employed over 235,000 individuals as of March.
To counter reports of layoffs, Alibaba highlighted its ongoing recruitment efforts as evidence of its commitment to hiring exceptional talent. The company stated, “We have never stopped recruiting and cultivating outstanding talents” in its official statement.
Considering the long-term potential of Alibaba, investors may consider the following trade:
Buy: Initiate a long position in Alibaba stock at the current market price.
Timeframe: Hold the investment for a medium to long-term horizon, aiming to capture potential growth and value creation.
Risk Management: Implement appropriate risk management strategies, such as setting stop-loss orders to protect against downside risks.
Monitor News and Developments: Stay updated on news related to regulatory changes, hiring updates, and potential spinoffs to reassess the investment thesis if significant changes occur.