An ambitious deal between Chinese conglomerate Dalian Wanda and US tech company IBM to join forces and become a major player in the booming Chinese cloud-computing market appears to be in danger, as Wanda plans deep cuts to personnel in a key department, sources told Caixin.
Wanda plans to make major cutbacks in the cloud-computing department in Wanda Internet Technology Group, the sources said. The group also cut jobs in Wanda Internet last year, leading some to speculate that Wanda is retreating from the cloud-computing field.
At an internal meeting on Monday, Wanda executives said the downsizing was due to problems in its partnership with IBM agreed last March, sources said. Another employee who attended the meeting told Caixin that Wanda planned to halt its efforts with IBM to sell cloud-computing services and temporarily suspend other related projects.