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Alibaba's Workforce Shrinks 34% in 2025 Amid Accelerated AI Investment
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Alibaba Slashes Workforce by 34% in 2025, Bets Big on AI Amid Profit Decline
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CNBC Awaaz
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22-03-2026, 07:06
Alibaba Slashes Workforce by 34% in 2025, Bets Big on AI Amid Profit Decline
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Alibaba reduced its workforce by 34% in 2025, with employee count dropping to 128,197 from 194,320.
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The company is rapidly investing in AI, aiming to become a full-stack AI company from semiconductors to AI models.
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Alibaba launched Wukong, an agentic AI service for businesses, and increased cloud/storage prices by up to 34%.
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Profit fell by 67% last quarter, and revenue missed estimates, leading to a 6% drop in Hong Kong shares.
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Workforce reduction was largely due to exiting offline retail, selling stakes in Sun Art Retail Group and Intime.
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