Alibaba Denies Recent Layoff Rumors
On May 25th, Alibaba Group refuted recent rumors of large-scale layoffs. In an official announcement on social media, the company stated that it plans to hire 15,000 new employees in 2023 across its six business units, with over 3,000 of these positions designated for new graduates.
Addressing the rumors of layoffs across various business units, including Taobao Tmall, Alibaba Cloud, Cainiao, and Local Life, the official statement declared, “Recently, rumors about layoffs in various businesses have been rife, but rumors are just rumors. Our recruitment is in full swing.
“Alibaba explained that employee movement is a regular occurrence in all businesses. “In the face of new situations, new opportunities, and new developments, Alibaba has never stopped innovating and upgrading itself, never stopped recruiting and nurturing excellent talents, which is the source of vitality for long-term development.”
However, the company did not specify which areas the layoff rumors were about.
On May 23rd, ThePaper.cn reported that Alibaba Cloud had begun organizational and personnel optimization, with an overall ratio of about 7%. The compensation standard was N+1+1. (“N” stands for the number of years an employee has worked at the company)
“Every year, the company will carry out normal organizational and personnel optimization. The personnel adjustment in May was launched after the annual bonus was distributed at the end of April. The overall optimization ratio is about 7%, and the compensation standard is N+1+1. Unspent annual leave and companion leave can be cashed in,” an internal Alibaba Cloud source told ThePaper.cn reporter.
According to the latest financial report data, as of March 31, 2023, the total number of Alibaba Group employees was 235,216, a decrease of 4,524 from the previous year.
On March 28, Alibaba launched a 1+6+N organizational transformation, establishing six major business groups and multiple (N) business companies, aiming to make the organization agile, shorten the decision-making chain, and respond faster.
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On May 18, Alibaba announced the commencement of the financing of its separate businesses. If progress goes smoothly, Alibaba Cloud will be completely separated from Alibaba Group and listed independently within the next 12 months. Cainiao and Hema will initiate listing plans, Alibaba International Digital Business Group will start external financing, and the six major business groups will formally establish a board of directors.
According to the latest information, Alibaba Cloud will be listed independently, Hema is expected to complete the listing within a year, and Cainiao will complete the listing within a year and a half at the latest.
On May 18, Alibaba also announced its Q4 2023 (Q1 calendar year 2023) and full year financial results, ending March 31, 2023. The Q4 revenue was about 208.2 billion yuan ($29.6 billion USD), a year-on-year increase of 2%; net profit attributable to mothers was about 23.516 billion yuan ($3.34 billion USD), a significant increase from a loss of 16.241 billion yuan the previous year; adjusted EBITA was 25.28 billion yuan ($3.59 billion USD), a year-on-year increase of 60%. In 2023, Alibaba‘s revenue was 868.687 billion yuan ($123.5 billion USD), a year-on-year increase of 2%; net profit attributable to mothers was 72.509 billion yuan ($10.3 billion USD), a year-on-year increase of 17%; adjusted EBITA was 147.911 billion yuan ($21 billion USD), a year-on-year increase of 13%.