Latest News by Industry
Company facing supply chain disruptions due to COVID-19 curbs and Russia-Ukraine war
Chinese e-commerce giant Alibaba Group Holding has laid off about 40% of the employees from its Russian joint venture as the unending Ukraine crisis disrupts cross-border business, the Nikkei reported on Friday, citing an employee with knowledge of the matter.
It’s unclear if there would be more layoffs in AliExpress Russia, as the commercial division was hit the hardest, according to the report.
Some of the laid-off staff chose to leave voluntarily, and a few relocated, the report said.
South China Morning Post reported that the job cuts started a month ago, citing Vedomosti, a Russian business daily newspaper.
AliExpress Russia, a joint venture launched in 2019 by Alibaba and Russian partners, operates domestic and cross-border transactions.
The online shopping platform depends on cross-border sales for more than three-quarters of its business.
The joint venture has been experiencing slower growth. It has not benefited from the pandemic-led e-commerce boom as supply chains are facing disruptions due to both the latest COVID-19 curbs and the Russia-Ukraine war.
Picture Credit: WSJ
ALSO READ: