Jack Ma Says Alibaba to Freeze Hiring After Growing 'Too Quickly' The Chinese e-commerce giant will reportedly put a hold on hiring for the rest of the year.

By Reuters

entrepreneur daily

This story originally appeared on Reuters

Wikipedia

Chinese e-commerce giant Alibaba Group Holding Ltd is freezing hiring for the rest of the year because it has grown "too quickly", Executive Chairman Jack Ma told staff.

"Alibaba has really developed too quickly ... this year our entire group headcount will not go up by one person," Ma said, according to a transcript of the April 23 speech carried on Alibaba's official messaging app Laiwang.

He, however, said the company will replace employees who leave. "When one leaves, we'll bring one in," Ma added.

The hiring freeze came to light about a week ahead of Alibaba is due to report March quarter earnings on May 7. In January, Alibaba, which handles more online commerce than Amazon.com Inc and eBay Inc combined, reported slowing revenue growth.

Headcount had been growing quickly at Alibaba. As of Dec. 31, 2014, the company had 34,081 employees, a 63 percent increase from a year earlier, the company said in January.

As long as gross merchandise volume was under 10 trillion yuan ($1.6 trillion), headcount should be below 50,000, Ma said. A headcount of "over 30,000" was already enough for now, he added.

Gross merchandise volume in the quarter to Dec. 31, 2014, was 787 billion yuan, a 49 percent increase from the same quarter the year before. For the whole year, it totaled about 2.3 trillion yuan.

Ma also that Alibaba would consolidate its businesses into seven segments - e-commerce, Ant Financial, Cainiao logistics, big data and cloud computing, advertising, cross-border trade and other internet services.

($1 = 6.2018 yuan)

(Reporting by John Ruwitch and Paul Carsten; Editing by Kenneth Maxwell and Miral Fahmy)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Barbara Corcoran Sounds Off on NAR Settlement: 'It's a Scary Time for Real Estate Agents'

The "Shark Tank" star took to Instagram to share her thoughts on Friday's ruling.

Side Hustle

Her 'Crude Prototype' and $50 Craigslist Purchase Launched a Side Hustle That Hit $1 Million in Sales — Now the Business Generates Up to $20 Million a Year

Elle Rowley experienced a "surge of creative inspiration" after she had her first baby in 2009 — and it wasn't long before she landed on a great idea.

Starting a Business

A Side Hustle Consultant Shares the Most Lucrative Gigs Right Now

Plus, he answers the side hustle questions he gets most often from clients.

Starting a Business

She Never Wanted to Start a Business, But Chronic Insomnia Was Motivation — Here's How She Achieved $20 Million in Sales and 8 Hours of Sleep a Night

Dr. Kathrin Hamm, founder and CEO of sleep-wellness company Bearaby, wanted to find a solution for her sleeplessness — and the products on the market weren't cutting it.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.