ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Alibaba's cloud unit to lay off around 1,000 before planned IPO

Move follows tech giant announcing spinoff of group within 12 months

Alibaba, like other Chinese tech companies, has been cutting costs and reducing headcount for more than a year.    © AP

HONG KONG -- Alibaba's cloud arm is laying off 7% of its total workforce, or around 1,000 employees, as the unit prepares for a full spinoff and eventual public listing, people familiar with the matter told Nikkei Asia.

The move comes days after Alibaba Group Holding announced a full spinoff of the Cloud Intelligence Group within 12 months, after which Alibaba will not hold any stake in the company, as all of the equity that Alibaba owns in the cloud business will be returned to existing shareholders by way of a dividend.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more