China's economy in recession? This big company fired 10,000 employees

Till now there was talk of recession, but now its effect is being openly talked about.  Whether any other country has come under its grip or not, but its signs are clearly visible in China.  China's big company Alibaba has fired 10,000 of its employees.  This shows how much pressure China's economy is facing.  Recently there were also reports that the state-run banks of China are in debt and the condition of many is getting worse.  Now big news of layoffs has come from Alibaba.  It has been said in a report that Alibaba has laid off 10,000 of its employees due to cost cutting.  This happened because China's economy is headed for recession.

The report says that China's big tech company Alibaba has fired 9,241 employees in the June quarter itself.  This report has come out of the 'South China Morning Post'.  The report also says that a total of 245,700 people have lost their jobs in Alibaba after the recent cuts.  The layoffs happened because Alibaba's earnings have declined by about 50 percent.  Alibaba's total earnings have been recorded at 22.74 billion yuan in the June quarter, while the net income in the same quarter in 2021 was 45.14 billion yuan.

What does the report say

The report said that layoffs or reduction in payrolls suggest that Alibaba wants to increase its spending and increase capacity through other means.  Regulatory pressure on Alibaba, a huge reduction in demand and a slowdown in the economy is being seen.  In this way, Alibaba has reduced 13,616 employees in the six months till June.  If we look at the records, this is the biggest reduction in the size of payroll since March 2016.

What did the chairman of Alibaba say

On the other hand, a news is coming that Alibaba Chairman and CEO Daniel Zhang Yong has said that by the end of this year, he will induct 6000 fresh graduates in his company.  A detailed report published in Crunchbase said that several other tech companies, mostly in Silicon Valley, laid off 32,000 employees last month.  Some of these companies also include Twitter and Tiktok.  Apart from this, companies like Shopify, Netflix, and Coinbase have also done massive layoffs.

There are constant indications that many Asian countries may go into recession.  It is most likely Sri Lanka where there is a situation of civil war and even the President and the Prime Minister have had to resign.  Inflation is at its peak and foreign aid is also stopped.  There is also a possibility of a recession of up to 20% in China and its effect can be clearly seen.