Alibaba’s cloud arm likely to cut 7% staff

Alibaba Group’s cloud division has begun a round of job cuts that could reduce its staff by about 7%, part of an overhaul aimed at preparing the once fast-growing unit for a spinoff and eventual IPO.

China’s largest cloud service has begun offering severance to employees or transfers to other parts of the Alibaba empire, a source said. The moves are intended to streamline the business, which Alibaba aims to fully carve out into a separate company within a year, the person said.

Alibaba Cloud is one of the biggest companies that will be created in a six-way split of the parent, joining other units in pursuing independent fundraising and potential listings. Bloomberg