Alibaba cuts down in-house deals team size amid regulatory crackdown pressures

Alibaba announced that it is cutting over a third of staff in its in-house deals team after Beijing’s regulatory crackdown sharply slowed down the deal-making pace.

Reuters cited people close to the matter indicating that it plans to slash strategic investment team of 110+ people (mainly based in mainland China) to ~70 people.

The job cuts mainly involve mid-level and senior people in the mainland.

The Chinese giant has attracted talents from major Wall Street banks and private equity funds and strengthened its in-house deal-making capabilities.

As per Dealogic data, Alibaba on average made ~44 investments every year, peaking in 2018 with 70 deals totaling $54B; during 2021, it reported 38 deals totaling $6.2B; in 2022 till date, it has been able to make just nine investments worth $5.2B.

In last week of June, it was known that Tencent and TikTok parent ByteDance started to lay off employees in China.

Author: Khyathi Dalal, Seeking Alpha

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