- Alibaba Group Holding Ltd BABA and Tencent Holdings Ltd TCEHY employees saw a job cut of 30%, the Print reports as per speculation on Weibo Corp WB.
- Internal speculation among employees was that Alibaba looked to lay off 30% of its employees while Tencent between 10% - 30% of its employees.
- Tencent started layoffs within small business departments in September 2021.
- Alibaba's community group-buying business unit MMC aimed to lay off ~20% of its employees, iQIYI Inc IQ looked to relieve 20% - 40% of its workforce, Kuaishou Technology KUASF 30% of its staff.
- The layoffs came amid an ongoing crackdown on tech in Beijing.
- The rising crude oil prices and hurdles in developing the Belt and Road Initiative (BRI) could hamper China's 2022 GDP growth target of 5.5% for GDP growth (8.1% in 2021), which is the lowest in decades.
- China grew by only 2.3%, the lowest economic growth in four decades as the second-biggest economy battled a slowdown due to a slump in manufacturing, real estate, exports, inflation, and consumer spending, with a possible headwind from the ongoing Ukraine crisis. China also battled rising unemployment woes.
- Price Action: BABA shares traded higher by 19.50% at $91.70 premarket on the last check Wednesday.
- Photo via Wikimedia Commons
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