About 40% of the staff at the Russian joint venture have been laid off due to the ongoing Ukraine crisis, according to the Nikkei on Friday.
The Chinese e-commerce giant could not be reached for comment.
The report said that it was not clear if there would be more layoffs, after some of the laid-off staff chose to leave voluntarily and a few relocated.
The commercial division was hit the hardest, according to the report.
AliExpress Russia, a joint venture launched by Alibaba and Russian partners in the year 2019, operates domestic and cross-border transactions.
The company relies on cross-border sales for more than three-quarters of its business and has been slower to benefit from a pandemic-led ecommerce boom as supply chains adjust to new travel curbs.
It has also been impacted by the Russia-Ukraine war.