Why Alibaba has shut down its quantum computing research lab
China-based Alibaba Group Holding Ltd has shut down its quantum computing research lab. This has resulted in the loss of roughly 30 jobs and signals potential wider cutbacks to boost the company's financial performance. Alibaba's equipment will be donated to the Zhejiang University in Hangzhou, where the company is headquartered, said a spokesperson today (November 27).
Restructuring efforts led by Joseph Tsai and Eddie Wu
This move comes as part of a larger restructuring effort led by Eddie Wu and Joseph Tsai, two close associates of co-founder Jack Ma, who took over the firm in September. Earlier this month, they announced the cancellation of the planned spinoff and listing of Alibaba's cloud services division, fueling speculation about other shifts in the company's long-term strategy. Before this decision, Alibaba was in the process of splitting into six separate businesses.
Downsizing workforce and revamping cloud arm
Since 2022, Alibaba is reducing its workforce and laid off over 30,000 employees in previous quarters. Last week, Wu and Tsai began revamping the cloud division, which has been losing market share to competitors backed by the state. The firm appointed three executives to lead major business lines within Alibaba Cloud, with two reporting directly to CEO Wu. The DAMO Academy, launched by Ma in 2017, was responsible for researching advanced technologies in areas like metaverse, robotics, and semiconductor design.
