China: Alibaba dismisses over 9,000 employees in 3 months after 50% fall in net income

[Hamartia Antidote]

China: Alibaba dismisses over 9,000 employees in 3 months after 50% fall in net income

Alibaba, a popular e-commerce firm in China slashed its total headcount by another 9,241 employees in the last three months, making it the largest layoff so far

www.republicworld.com

Alibaba, a popular e-commerce firm in China slashed its total headcount by another 9,241 employees in the last three months, making it the largest layoff so far. The decision reportedly came as the company is reeling under a massive 50% drop in net income in the June quarter. The latest clampdown brought the total number of workers in the company to around 2,45,000, ANI reported.

The downsizing is directly linked to reduced revenue from sluggish sales amid the slow development of the Chinese economy amid stifling COVID measures and crackdown on tech companies by the ruling Communist Party. The cost-cutting step also came after a humongous 50% drop in net income amounting to some $3.4 billion in the second fiscal quarter from roughly $6.6 billion (same time) last year.

 

[MH.Yang]

Alibaba's market share was robbed by JD.COM and PDD.

That has nothing to do with the COVID&blockade.

 

[letsrock]

Alibaba's market share was robbed by JD.COM and PDD.

That has nothing to do with the COVID&blockade.

Just curious - what happens in china if someone loses a job like this. Does govt mandate that companies pay them severance? do they get any unemployment beenfit ?

 

[MH.Yang]

Just curious - what happens in china if someone loses a job like this. Does govt mandate that companies pay them severance? do they get any unemployment beenfit ?

According to Chinese law, the compensation for layoffs is "N + 1" months' salary. N refers to working years. For example, employees who have been laid off for 11 years need to be compensated for 12 months' wages.

Chinese people need to pay unemployment insurance when they work. In case of unemployment, the insurance company will compensate 70-80% of the local minimum wage every month.

 

[letsrock]

According to Chinese law, the compensation for layoffs is "N + 1" months' salary. N refers to working years. For example, employees who have been laid off for 11 years need to be compensated for 12 months' wages.

Chinese people need to pay unemployment insurance when they work. In case of unemployment, the insurance company will compensate 70-80% of the local minimum wage every month.

Is there a lower limit to the size of the company enforcing it ?
I doubt a small restaurant can pay n+1 compensation to its employee

 

[MH.Yang]

Is there a lower limit to the size of the company enforcing it ?
I doubt a small restaurant can pay n+1 compensation to its employee

There is no lower limit. If the enterprise refuses to execute, the employee can go to the labor bureau to sue, and this kind of lawsuit will almost certainly win.

However, non Chinese workers usually do not sign contracts, and their rights and interests are not guaranteed. There are also those short-term summer workers who usually have no contract protection.

 

[PakFactor]

China: Alibaba dismisses over 9,000 employees in 3 months after 50% fall in net income

Alibaba, a popular e-commerce firm in China slashed its total headcount by another 9,241 employees in the last three months, making it the largest layoff so far

www.republicworld.com

Alibaba, a popular e-commerce firm in China slashed its total headcount by another 9,241 employees in the last three months, making it the largest layoff so far. The decision reportedly came as the company is reeling under a massive 50% drop in net income in the June quarter. The latest clampdown brought the total number of workers in the company to around 2,45,000, ANI reported.

The downsizing is directly linked to reduced revenue from sluggish sales amid the slow development of the Chinese economy amid stifling COVID measures and crackdown on tech companies by the ruling Communist Party. The cost-cutting step also came after a humongous 50% drop in net income amounting to some $3.4 billion in the second fiscal quarter from roughly $6.6 billion (same time) last year.

Amazon’s 100,000 job cuts reflect industry-wide adjustments to economic uncertainty

Amazon lays off 100,000: As pandemic-era spending cools and the online ad market declines, hiring pauses and layoffs have become a relief valve for companies.

www.insiderintelligence.com

 

[letsrock]

There is no lower limit. If the enterprise refuses to execute, the employee can go to the labor bureau to sue, and this kind of lawsuit will almost certainly win.

However, non Chinese workers usually do not sign contracts, and their rights and interests are not guaranteed. There are also those short-term summer workers who usually have no contract protection.

Thanks for your reply. Treatment of foreigners wasn't my key area of interest in the question.

What i was interested in was how a socialist country treats the workers in this situation. Workers are of course the proletariat here and they were working for private capital (Ali baba). Once the capital has no longer any need for them - it kicked them out. I just wanted to know how the state stood for the workers in this case.

 

[MH.Yang]

Thanks for your reply. Treatment of foreigners wasn't my key area of interest in the question.

What i was interested in was how a socialist country treats the workers in this situation. Workers are of course the proletariat here and they were working for private capital (Ali baba). Once the capital has no longer any need for them - it kicked them out. I just wanted to know how the state stood for the workers in this case.

It is not a question of treating foreigners, but a question of whether employees have signed a contract with the company.

If it is a legal foreigner, he must have signed a contract with the company, so the Labor Bureau has evidence to protect his rights and interests.

However, there are many illegal foreign workers in China who have no identity to sign contracts.

Even if a Chinese worker does not sign a contract, he will still have evidence such as wage records to protect his rights and interests.

As for short-term workers such as summer workers, they usually do not sign contracts.

 

[hirobo2]

Somebody should have told me about Aliexpress earlier. I always thought it was a B2B (business to business) website where retailers buy bulk items for cheap from China. So I avoided it all this time...

Aliexpress even better than eBay or Amazon. You can find things you can't find on eBay or Amazon. The price usually a lot cheaper and shipping very fast. eBay usually takes 2 months for a $5 item to ship to me from China. If I buy the same item on Aliexpress, get item delivered in 2 weeks.

Best thing, I can pay by Paypal that pays Alipay that then pays the seller.

Aliababa just having temporary problems. They should promote Aliexpress more...

 

[大汉奸柳传志]

happens when a company no longer enjoys monopoly