- Alibaba Group Holding Limited’s (NYSE:BABA) joint venture in Russia has laid off about 40% of employees, Nikkei Asia reports.
- It was not clear if there would be more layoffs after some of the laid-off staff chose to leave voluntarily and a few relocated, Reuters reports.
- Alibaba and Russian partners launched AliExpress Russia joint venture in 2019, which operates domestic and cross-border transactions.
- Alibaba depends on cross-border sales for more than 75% of its business and has been slower to benefit from a pandemic-led e-commerce boom as supply chains adjust to new travel curbs.
- Alibaba was also affected by the fallout from the Russia-Ukraine war.
- The layoff was due to the invasion of Ukraine as the war severely disrupted cross-border business.
- Previously reports of a significant job cut in Alibaba were doing the rounds.
- Alibaba continued its restructuring activities as planned and international diversification amid the uncertain domestic regulatory environment.
- Price Action: BABA shares traded higher by 6.99% at $86.76 on the last check Friday.
Northland Capital Markets analyst Michael Latimore downgrades Brightcove (NASDAQ:BCOV) from Outperform to Market Perform.