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China’s Tech Giants is Planning to Lay Off

Today, it is reported that Tencent and Alibaba will lay off in the next few weeks. According to internal speculation among employees, Tencent is expected to lay off 10% to 30% of its employees, and Ali will lay off 30% of its employees.

This week, Ali’s MMC business group is planning to lay off about 20% of the staff. At present, many business lines have preliminarily finalized the layoff list.

According to public information, Alibaba announced the establishment of the MMC business group in March 2021, focusing on community business, and integrating Alibaba LST and Freshhema Market.

According to relevant media reports, as of mid-April, Alibaba Group’s MMC business group has publicly released nearly 1,500 jobs. Not only that, according to 100EC, Alibaba Group will invest at least 20 billion yuan in community group buying in 2021.

Under this circumstance, the MMC business group has achieved rapid development. Data shows that in April, the daily order volume of Hema Market was about 2 million orders, and when it developed to June, the order volume rose to about 6 million orders. Moreover, in late June, the 2021 impact target set by the MMC business group is: opening more than 20 provinces, with an average daily number of 40 million orders and an average daily GMV of 350 million yuan.

But the MMC business group has been adjusting. In June, some media reported that Zou Zhijun, the former channel director of the MMC business group, had been transferred, and his position was taken over by Li Bo, the former B2B business group operation and financial director. At the same time, Wang Tingxiang, who is responsible for the operation of the MMC business group, also assumed a role similar to the head of the business analysis department of Meituan. In addition, in September, the MMC business unit announced that it would integrate “Freshhema” and “Taobao Shopping” and upgrade them to a new brand “Taocaicai”.

Since 2021, China’s Tech giants have started layoffs.

In September, Tencent started layoffs in its small business department; in December, iQiyi was reported to have laid off more than 20% of its employees. At the same time, Kuaishou also reported that the edge business line has been optimized… After the Spring Festival, this wave of “layoffs” has become more intense. In just two months, a large number of leading Internet companies, including Weibo, Xiaomi, Didi, Zhihu, Pinduoduo, etc., have successively reported “optimization” of personnel and adjustment of business lines.

Ella Shi

Ella Shi is a third-grade student of the Literature Department, a lover of literature and photography. She used to work for the college media community as an author of the school paper. Now she joins FirmKnow to practice and explore her business knowledge.
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