Alibaba's cloud business to cut 7% staff as it prepares for a spinoff - report
Investing.com | Author Senad Karaahmetovic
Published May 23, 2023 07:38AM ET
Alibaba's (BABA) cloud business to cut 7% staff as it prepares for a spinoff - report
Alibaba's (NYSE:BABA) cloud division has started to cut jobs and could eventually reduce the total workforce by roughly 7%, Bloomberg News reports.
The restructuring process has begun as the unit prepares for a spinoff within the next 12 months. The aim of the process is to streamline the once fast-growing business. An initial public offering (IPO) is also not ruled out.
Bloomberg also added that initial forecasts have Alibaba Cloud's valuation at over $30 billion. The cloud unit is one of the biggest candidates for an IPO given its mature business model.
CEO Daniel Zhang told analysts last week that he believes the cloud unit could even exceed Alibaba in size one day. The business segment generated almost $12B in sales in 2022.
The “cloud business is relatively independent and different from other consumer facing business,” Jefferies analysts said last week.
Susquehanna analysts said today that the restructuring process is a long-term value driver for shareholders.
“Each company can surface additional operating metrics and can better focus on individual business and financing needs,” the analysts said.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.