Technology Alibaba prepares the biggest change in its history: it will be divided...

Alibaba prepares the biggest change in its history: it will be divided into 6 different companies to boost its growth after the pandemic

Alibaba It is not only an electronic commerce platform, but it is a conglomerate of Chinese companies of gigantic dimensions at an international level. The company is not experiencing its best economic moment since 2020, but it has begun to prepare for its new expansion phase.

Daniel Zhang, CEO of the Alibaba group, has assured in a letter addressed to employees that the conglomerate will undergo the largest internal restructuring of its 24-year historyas you have been aware Reuters.

As part of this change in structure, the Alibaba group will be divided into 6 different companies: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.

The new units will go to operate independently, each with its own CEO and board of directors. Each address will consider the possibility of organizing new rounds of financing or going public.

This was the private meeting in the apartment of Jack Ma, founder of AliExpress, in which he planned to confront all of Silicon Valley

There will be only one exception to Alibaba’s new policy: Taobao Tmall Commerce Groupwhich will be in charge of managing the e-commerce business of the company in China, which will continue to belong to Alibaba with a 100% stake and will not be listed.

Daniel Zhang has assured that “the original intention of this reform is make the organization more agile, shorten decision times and respond faster“.

He has also called for his employees to return to having an “entrepreneurial mentality” and has advanced that the company will “lighten and shrink” its corporate functionsalthough it has not come to confirm if there will be layoffs.

This move comes just one day after Alibaba founder Jack Ma returned to China after a sabbatical outside the Asian country and with almost no responsibilities in the company he created.

Meanwhile, Alibaba has experienced one of its most difficult moments. In 2020, the pandemic cut China’s incentives to private companies and that policy had not changed until the end of the zero COVID policy late last year, with the relaxation of pandemic restriction measures.

Since the start of the pandemic, the context has caused Alibaba shares to lose value, which have fallen 70% since 2020.

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