Alibaba to Cut 7% of Cloud Unit’s Staff

Alibaba Group Holding Ltd. is cutting 7% of its employees in its cloud computing division, Caixin learned from a person familiar with the matter, as the tech giant kicks off the unit’s spinoff and eventual initial public offering as part of a major reorganization plan.

The staff cuts will begin this month, the source said, adding that severance packages worth at least two months of salary would be offered to affected employees, who also have the option to cash out their untaken leave days. The company will also help them with internal transfers, the source said.