Alibaba Group’s cloud business unit has started a round of downsizing that will impact 7 percent of the staff as it streamlines its business in preparation for an IPO, Reuters news report said.
The cloud unit has started to offer severance to employees.
Earlier this month, Alibaba Group announced listing and fund-raising plans for four of its business units, including its logistics unit Cainiao. As part of the plans, China’s largest cloud service is slated to be listed next year.
Alibaba’s cloud division reported a revenue of 18.6 billion yuan ($2.69 billion) in the recent quarter, down 2 percent year-on-year.
