The cloud unit, which is part of the company’s core commerce business, has been expanding rapidly in recent years. It reported a revenue of $2.2 billion in the quarter ended June 30, up from $1.3 billion a year earlier. The unit is expected to be a key driver of growth for the company in the coming years.
The job cuts come as Alibaba prepares for an initial public offering of its cloud unit, which could be one of the largest tech IPOs in recent years. The company has yet to announce a timeline for the IPO, but it is expected to take place in the next few months.
The job cuts are part of Alibaba’s efforts to streamline its operations and focus on its core businesses. The company has been investing heavily in its cloud business and is looking to capitalize on the growing demand for cloud services in China.