Alibaba Group slashes third of deals team staff after regulatory crackdown
After Beijing'south regulatory crackdown slowed the Chinese e-commerce giant's dealmaking pace, the Chinese Grouping has cut over a third of its staff in its in-house deals team, four people with knowledge of the matter said.
The strategic investment squad of more than 110 people, mainly in mainland China, will be reduced to about 70, said two of the people, which the company has already informed a majority of staffers of their redundancy.
The job cuts involve mainly mid-level and senior people in the mainland, merely they were not immune to speak to the media, as they were not authorised to speak to the media. The bargain team has staff in Hong Kong, they added.
In one of their biggest layoff rounds this year, both Alibaba and its chief rival Tencent planned to cut tens of thousands of jobs equally the clampdown and Prc'southward COVID 19 curbs stifled growth, Reuters reported in March.
In January, sources familiar with the thing told Reuters that TikTok owner ByteDance had sunk its investment team and dissolved a sub-grouping focused on financial returns in response to regulatory crackdowns in Communist china.
After years of laissez-faire arroyo that drove growth and dealmaking at breakneck speed, Chinese regulators launched a unprecedented campaign in late 2020 to rein in the country's technology giants.
On Sunday, China's market regulators imposed the latest fines on Alibaba and Tencent, also equally a number of other firms for failing to comply with anti-monopoly rules on disclosure of transactions.
The regulatory crackdown has slowed sales growth for most internet companies, made new upper-case letter raising and business expansion harder, and made new capital raising and business expansion much harder to practise due to a slowing economy.
It has forced companies such as Alibaba and Tencent to await for ways to cut operating costs.
Chinese billionaire Jack Ma's Alibaba was i of the most agile corporate investors in the world, having built an ecosystem of portfolio companies across sectors including retail, local services and media and entertainment.
Over the years, the company has attracted talents from major Wall Street banks and private equity funds, including veteran Goldman Sachs dealmaker Michael Evans.
In 2016 when Chinese firms were actively buying up avails globally, the internal investment team of Alibaba grew to 150 people, three times larger than that of Tencent, in a bid to sustain its global dealmaking bulldoze, co-ordinate to Reuters.
Betwixt 2015 and 2021, Alibaba made virtually 44 investments every yr, peaking in 2018 with 70 deals totalling $54 billion, according to Dealogic. It cutting 38 deals totalling $vi.2 billion during the 2021 regulatory crackdown. Alibaba has made only 9 investments worth $5.2 billion this twelvemonth.
In Feb, the company laid off employees from its other business units and could axe more than xv% of its total workforce, or about 39,000 staff, according to a written report by the company in March.
Source: https://fa.news/articles/chinese_e_commerce_giant_alibaba_cuts_over_a_third_of_its_staff_in_dealmaking_team-235162/
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