Is Alibaba's business line undergoing major layoffs due to online rumors, and the internet needs to be shaken three times?

Tech 2023-05-24 06:05:55 Source: Network

Recently, there are rumors that multiple businesses under Alibaba Group, including Taobao, Taobao, Alibaba Cloud, and CTO, may start rolling layoffs, with a proportion of 20% to 30%. This news has sparked widespread attention and discussion in the industry, so the question is, has Alibaba laid off employees? If so, what are the scale, scope, and reasons for layoffs? What does this mean for Alibaba's future development and the entire internet industry?Alibaba response: Optimization of normal organizational positions and personnelAlibaba has provided an official response to the news of layoffs spread online

Recently, there are rumors that multiple businesses under Alibaba Group, including Taobao, Taobao, Alibaba Cloud, and CTO, may start rolling layoffs, with a proportion of 20% to 30%. This news has sparked widespread attention and discussion in the industry, so the question is, has Alibaba laid off employees? If so, what are the scale, scope, and reasons for layoffs? What does this mean for Alibaba's future development and the entire internet industry?

Alibaba response: Optimization of normal organizational positions and personnel

Alibaba has provided an official response to the news of layoffs spread online. On May 23rd, Alibaba Cloud insiders stated that the overall optimization ratio is about 7%, and the compensation standard is N+1+1. Alibaba Cloud conducts regular organizational position and personnel optimization every year. The personnel adjustment is scheduled for May and was initiated after the year-end bonus was distributed at the end of April.

Similarly, in the fourth quarter and full year results of the 2023 fiscal year announced on the evening of May 18th this year, Zhang Yong, Chairman and CEO of Alibaba Group, also mentioned the topic of organizational change. He said that in the past year, Alibaba Group has made an unprecedented and most dramatic change in relations of production. He pointed out that this change is aimed at better adapting to market changes and customer needs, improving organizational efficiency and innovation capabilities, and stimulating the vitality and competitiveness of various business groups.

From these responses, it can be seen that Alibaba did not deny the fact of layoffs, but also did not acknowledge the proportion of layoffs reported online. Alibaba describes layoffs as normal organizational positions and personnel optimization, emphasizing the need for better development and change.

Alibaba layoffs: Multiple businesses have been reduced, and core e-commerce will still expand staffing

So, how many people did Ali lay off? According to media reports, Alibaba laid off a total of 19576 employees in 2022 and another 4524 employees in the first quarter of 2023. Based on this calculation, Alibaba has laid off over 24000 employees in over a year.

According to financial report data, as of March 31, 2023, Alibaba has a total of 235216 employees. Based on this calculation, the layoff rate of Alibaba in over a year is approximately 9%.

From the perspective of business segments, multiple business lines of Alibaba have experienced varying degrees of reduction. The businesses involved include MMC (community e-commerce), Feizhu, DingTalk, Cainiao, digital media, and entertainment. The core e-commerce sector will still expand its workforce.

From this information, it can be seen that Alibaba's layoffs are not a one size fits all large-scale reduction, but rather selective optimization and adjustment based on the performance and development needs of different business lines.

Internet industry: transformation, upgrading, and win-win cooperation

From the situation of Alibaba Group, it is not possible to simply summarize its current situation with "major layoffs". In fact, "layoffs in large factories" is not a new topic. In the context of the rapid development and changes in the internet industry, terms such as "survival of the fittest", "survival competition", "transformation and upgrading" have become the norm.

For the entire internet industry, 'layoffs from major factories' does not necessarily mean' the arrival of a cold winter '. On the contrary, new opportunities and challenges are constantly emerging in areas such as new technologies, new consumption, and new scenarios. The concepts of "win-win cooperation", "cross-border integration", and "open sharing" are also leading the industry forward.

Therefore, the "massive layoffs in Alibaba's online business" does not mean that "the internet needs to be shaken three times". As long as we maintain an innovative spirit and customer orientation, and adapt to market changes and regulatory requirements, "big factories" still have strong vitality and competitiveness.

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