Alibaba has significantly reduced its workforce by approximately 34% in 2025, dropping from 194,320 employees to 128,197 as part of a strategic shift towards artificial intelligence and away from offline retail. This announcement came alongside a disappointing earnings report, revealing a 67% profit decline and revenue that fell short of expectations, prompting a 6% drop in the company’s Hong Kong shares on Friday.
The workforce reduction is part of Alibaba’s broader strategy to streamline operations and focus on high-growth areas like AI, following the divestiture of its retail assets, including the Sun Art retail group and a stake in Intime. The tech giant’s pivot to AI is underscored by the recent launch of its Wukong AI service and a notable price increase for cloud services, reflecting rising demand and supply chain pressures.
For market professionals, Alibaba’s aggressive restructuring signals a shift in focus that could reshape its competitive landscape. To gain deeper insights into these developments and their implications, I recommend exploring the full article.
Source: cnbc.com