Alibaba Group Chairman Joe Tsai announced on Tuesday that the company will restart hiring after a prolonged workforce reduction, citing renewed confidence following Chinese President Xi Jinping’s February meeting with top business leaders.
The rare meeting, which included Alibaba co-founder Jack Ma, signaled a shift in Beijing’s approach to the tech sector after years of regulatory crackdowns that stifled investment and led to widespread layoffs. Tsai described the meeting as a “very, very clear signal” for businesses to reinvest and expand hiring.
Speaking at HSBC’s Global Investment Summit in Hong Kong, Tsai noted that Alibaba’s workforce had been shrinking for the past 12 quarters but now sees a turning point. “I think we’ve reached the bottom, and we’re going to start to reboot and rehire,” he said.
China’s private sector plays a critical role in job creation, particularly for the 13 million college graduates entering the workforce each year. Hutong Research partner Guo Shan highlighted that many of these graduates seek jobs in IT and internet-related fields, making Alibaba’s hiring plans a positive indicator for the sector.
Alibaba has been investing heavily in artificial intelligence, but Tsai voiced concerns over the massive sums being poured into AI development in the U.S. “People are talking about $500 billion, several hundred billion dollars. I don’t think that’s entirely necessary,” he said, warning that speculation in data center investments could signal the start of an AI bubble.
In contrast, Alibaba plans to invest 380 billion yuan ($52 billion) in cloud computing and AI infrastructure over the next three years.
Investor sentiment has responded positively to Beijing’s policy shift. The Hang Seng Tech Index, which includes Alibaba, has risen 24% this year, driven by optimism over Xi’s engagement with the tech industry and the rapid rise of Chinese AI startup DeepSeek.
