Followers | 680 |
Posts | 141092 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Thursday, July 14, 2022 8:21:30 AM
By: Reuters | July 14, 2022
HONG KONG (Reuters) - Alibaba (NYSE:BABA) Group is cutting over a third of staff in its in-house deals team, four people with knowledge of the matter said, after Beijing's sweeping regulatory crackdown sharply slowed the Chinese e-commerce behemoth's dealmaking pace.
Alibaba plans to reduce its strategic investment team of more than 110 people, mainly based in mainland China, to about 70, said two of the people, adding the company has already informed a bulk of staffers of their redundancy.
The job cuts mainly involve mid-level and senior people in the mainland, said the two people, declining to be named as they were not authorised to speak to the media. The company's deals team also has staff in Hong Kong, they added.
Alibaba did not immediately respond to a request for comment.
Alibaba and its main rival Tencent planned to cut tens of thousands of jobs combined this year in one of their biggest layoff rounds as the crackdown and China's COVID-19 curbs stifled growth, Reuters reported in March.
TikTok owner ByteDance also shrunk its investment team and was dissolving a sub-group focused on financial returns in response to regulatory crackdowns in China, sources familiar with the matter told Reuters in January.
Chinese regulators launched an unprecedented campaign in late 2020 to rein in the country's technology giants after years of laissez-faire approach that drove growth and dealmaking at breakneck speed.
On Sunday, China's market regulator imposed the latest fines on Alibaba and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions.
The regulatory crackdown, coupled with a slowing economy, has sharply slowed sales growth for most of the internet companies, smashed their share prices, and made new capital raising and business expansion much tougher.
That, in turn, has forced companies such as Alibaba and Tencent to look for ways to cut operating costs.
Chinese billionaire Jack Ma's Alibaba was one of China's most active corporate investors, having built an ecosystem of portfolio companies across sectors including retail, local services and media and entertainment.
Alibaba has attracted talents from major Wall Street banks and private equity funds, including veteran Goldman Sachs (NYSE:GS) dealmaker Michael Evans, over the years to strengthen its in-house dealmaking capabilities.
In 2016 when Chinese firms were actively snapping up assets globally, Alibaba's internal investment team grew to about 150 people, three times larger than that of Tencent, in a bid to sustain its global dealmaking drive, Reuters has reported.
From 2015 to 2021, Alibaba on average made about 44 investments every year, peaking in 2018 with 70 deals totalling $54 billion, according to Dealogic. Even during the 2021 regulatory crackdown, it cut 38 deals totalling $6.2 billion. This year so far, however, Alibaba has made just nine investments worth $5.2 billion.
The company started laying off employees from its other business units in February and could ultimately axe more than 15% of its total workforce, or about 39,000 staff, Reuters reported in March.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent BABA News
- Alibaba Group Will Announce March Quarter 2024 and Full Fiscal Year 2024 Results on May 14, 2024 • Business Wire • 04/30/2024 09:00:00 AM
- Alibaba.com Unveils Affordable, Customizable Logistics Solutions for U.S. SMEs • PR Newswire (US) • 04/17/2024 02:00:00 PM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Boeing Down in Pre-Market Due to CEO Developments and Denver Incident; MicroStrategy Surges 11% with BTC Spike, and More • IH Market News • 04/08/2024 11:17:49 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:35:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (Canada) • 03/27/2024 02:16:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:16:00 PM
- Alibaba Group Cainiao IPO Update and Share Purchase Offer Conference Call • Business Wire • 03/26/2024 10:40:00 AM
- Crypto: AIOZ Network Partners with Alibaba Cloud, Google Integrates ENS Domain Balances, and Key Updates • IH Market News • 03/22/2024 05:32:29 PM
- FedEx Soars 13% with Profits Above Forecasts, Nike Hit by China Slowdown, and Latest News • IH Market News • 03/22/2024 01:07:53 PM
- Alibaba.com Witnesses Notable Increase in U.S.-Based SME Buyers During Its Annual March Expo • PR Newswire (US) • 03/21/2024 02:00:00 PM
- Apple Pre-Market Drop Due to Antitrust Threats, Surprising Profit Boosts Micron Shares, and Latest Market Updates • IH Market News • 03/21/2024 11:17:26 AM
- Alibaba.com Records Strong Growth in the Number of UK SME Buyers at This Year's March Expo • PR Newswire (US) • 03/21/2024 09:30:00 AM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
- AliExpress Levels Up Experience for U.S. Customers with Updated Shopping Guarantees and a Redesigned Mobile App • PR Newswire (US) • 03/18/2024 02:49:00 PM
- Apple & Google in Talks for Gemini AI on iPhone, Nvidia’s GTC Conference Today, and Latest News • IH Market News • 03/18/2024 11:10:46 AM
- Adobe Stock Drops Following Below-Estimate Projections, Cardlytics Surges with Unexpected Profit, and More News • IH Market News • 03/15/2024 11:30:55 AM
- Sam Altman Rejoins OpenAI Board; Coinbase, MicroStrategy Surge Pre-Market Amidst Bitcoin’s Latest Milestone • IH Market News • 03/11/2024 10:39:03 AM
- CNOOC Oil Field Discovery in South China Sea, Grifols Surges 18% After KPMG Approval, and Latest News • IH Market News • 03/08/2024 11:19:59 AM
- Alibaba Releases Report on Cross-Border Trade's Positive Impact on the U.S. Economy • PR Newswire (US) • 03/06/2024 11:00:00 AM
- Alibaba.com's Annual March Expo Highlights Small Business Sourcing Trends and Rolls Out More Guaranteed Services • PR Newswire (US) • 02/29/2024 03:29:00 PM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:07:00 AM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:01:00 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM