As China cracks down on the Tech sector, Alibaba has been cutting staff as part of a major restructuring.

Deal-making at the company will be the first to be affected, as the company cuts “over a third” of its in-house deals team, according to a report from Reuters.

The company’s investment division, with more than 110 employees, is set to be cut to about 70 people. Workers have already been informed.

Previously Alibaba had been making on average, 44 investments each year between 2015 and 2021. Investments toped out in 2017, with 70 deals worth roughly $54 billion.

The investments division had at one time employed as many as 150 people in 2016, back when Chinese firms were buying global assets aggressively.

It is expected the cuts will mostly affect mid-level and senior employees located on the mainland, however the company also has investment division staff employed in Hong Kong.

Alibaba had just been hit by new fines from regulators on Sunday for failing to disclose transactions in accordance with anti-monopoly rules. So far the Chinese crackdown has slowed sales at all the affected companies being targeted.

Tencent, a rival to Alibaba, is planning its own round of cuts, targeting tens of thousands of jobs this year. It will be one of the tech firm’s largest layoffs ever. Tencent attributed the cuts to China’s Covid lockdowns, as well as the recent regulatory crackdown.

Bytedance, parent company to TIkTok, conducted layoffs from its investment team in January. The company also cited China’s regulatory crackdown as a key motivating factor.

Reuters noted Alibaba stated making additional layoffs in February, and the total number laid off may reach of to 15% of its total workforce.