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"Alibaba, Tencent reportedly cutting thousands of jobs
Mar. 16, 2022 9:59 AM
As the shares of numerous Chinese tech companies surged Wednesday, Alibaba (NYSE:BABA) and Tencent Holdings (OTCPK:TCEHY) are reportedly close to cutting thousands of jobs due to Beijing's ongoing regulatory crackdown on China's tech sector.
According to a report from Reuters, Alibaba (BABA) is planning layoffs that could surpass 15% of the e-commerce giant's 39,000-person workforce. Tencent (OTCPK:TCEHY) is also on track to cut between 10% and 15% of its more than 94,000 employees, according to what Reuters said were sources with "knowledge of the matter."
The report also said Alibaba (BABA) has already begun shedding jobs in areas such as its consumer services division, which includes food and grocery delivery and mapping services.
The layoffs come during what has been an effort by Beijing to exert more influence over China's Internet sector that has been going on for more than a year. China has been taking steps to impose more rules over issues such as how its tech companies manage the personal information of consumers.
Along with Alibaba (BABA) and Tencent (OTCPK:TCEHY), Chinese ride-sharing giant DiDi Global (NYSE:DIDI) is reportedly on track to cut as much as 15% of its workforce by the end of March. Last week, DiDi (DIDI) shares cratered after the company put a halt on plans to list its shares in Hong Kong after a Chinese regulatory agency said DiDi (DIDI) failed to meet guidelines for preventing security and data leaks on its platform.
Despite the reports of widespread job cuts, Alibaba (BABA) shares rocketed up by more than 36%, Wednesday, while Tencent (OTCPK:TCEHY) surged more than 33%, and DiDi (DIDI) ended the day up by more than 41% following a report that Beijing will take more steps to stabilize China's economy and support the country's economic growth."