Alibaba workforce shrinks 34% in 2025 as Chinese tech giant doubles down on AI Alibaba's workforce decreased by approximately 34% during 2025, as the company sold off parts of its offline retail operations and focused more on artificial intelligence. The company reported having 128,197 employees at the end of December, compared to 194,320 at the same time the previous year. The latest employee count was disclosed in an earnings report released on Thursday, which also revealed that the company's profits dropped by 67% and its revenue fell short of expectations for the final three months of 2025. Alibaba's shares in Hong Kong were down 6% on Friday. Most of the workforce reduction occurred in the March 2025 quarter, following the sale of Sun Art retail group at the end of 2024. The company also exited its stake in the department store chain Intime around the same time. Alibaba is part of a group of major tech firms that have cut staff in the past year, from Silicon Valley to Hangzhou, China. Alibaba's staff has supported its wide range of business units, including e-commerce, cloud computing, logistics, and other related services. However, the company has been reducing its workforce steadily in recent years, with the latest cuts being significantly larger than the 11% reduction in December 2024 compared to the previous year. This move comes as Alibaba seeks to divest labor-intensive assets and restructure its core businesses, with a strong emphasis on artificial intelligence. The tech giant aims to become a full-stack AI company, covering areas from semiconductor manufacturing to computing and AI models. Recently, Alibaba launched an agentic AI service called Wukong for businesses and increased prices for its cloud and storage services by up to 34% due to higher demand and supply chain costs.#alibaba #sun_art #intime #eddie_wu #wukong
Hang Seng Index Steady Ahead of Major Chinese Tech Earnings The Hang Seng Index has remained stable as investors await earnings reports from major Chinese companies such as Alibaba, Tencent, and Meituan. The index has seen a two-day rise, driven by recent positive macroeconomic data from China and its alignment with broader global equity markets. Analysts note that the index has rebounded 5% from its lowest level this month, with attention now focused on upcoming corporate results. Over the past week, the Hang Seng Index has climbed from a low of H$24,937 on March 6 to its current level of H$26,220. This recovery has been fueled by improved economic indicators in China, which suggest a gradual stabilization of the economy. Retail sales in February increased by 2.8% compared to the previous month’s 0.9% growth, surpassing expectations. Fixed asset investment also rose by 1.8% in February, reversing a 3.8% decline in January. Housing prices declined at a slower pace than anticipated, indicating a potential stabilization in the real estate sector. These figures highlight a broader trend of economic resilience in China, as officials work to meet the government’s annual growth target of between 4.5% and 5%. Historically, the Hang Seng Index has performed well during periods of Chinese economic recovery, as many listed companies operate heavily in mainland China. The current rebound reflects this pattern, with investors optimistic about the outlook. The index’s rise is also tied to the anticipation of earnings reports from key firms. Tencent Holdings, the largest company in the index, is set to release its financial results on Wednesday. The report will provide insights into its growth trajectory and investments in artificial intelligence. Tencent’s stock has surged 12% since its March low, signaling investor confidence.#morgan_stanley #tencent #hang_seng_index #alibaba #meituan
