Alibaba, the Chinese e-commerce and technology giant, has announced a major management overhaul. The company is restructuring into six different business divisions to adapt to fast-changing technologies. The moves are also aimed at spurring growth at a time when the Chinese economy is slowing despite an end to COVID-19 pandemic restrictions a half-year ago.
In an unexpected move, Eddie Wu, the chairman of Taobao and Tmall Group, will succeed Daniel Zhang as CEO of Alibaba. Zhang will in turn be CEO and chairman of Alibaba’s cloud computing unit, which has been approved to be spun off and is expected to be listed for trading within a year. Joseph Tsai, current executive vice chairman of Alibaba, will succeed Zhang as chairman of the Alibaba Group.
Alibaba’s reorganization will allow five of its six business divisions, excluding the core e-commerce business, to raise outside capital and go public. The changes take effect on September 10.
Alibaba was co-founded by Eddie Wu, who was the company’s technology director when it was founded in 1999. Wu also served as special assistant to Alibaba’s co-founder and former board chairman Jack Ma between 2014 and 2019, and has had stints as CTO of Alibaba’s digital wallet business Alipay and as chairman of Alibaba Health.
Wu has thus far maintained a low media profile, but he has impressive credentials. He graduated from Zhejiang University of Technology with a bachelor’s degree in computer science in 1996. He was Alibaba’s first programmer, according to the Drum, an outlet focused on the marketing and media industries.
The news of Eddie Wu’s appointment as CEO was a surprise to many, but it is a clear indication of the confidence that Alibaba has in him. He is expected to lead the company into a new era of growth and innovation.
Alibaba has in recent years come under scrutiny by the Chinese government amid a crackdown on the technology industry. Beijing leashes Jack Ma, the firm’s best-known co-founder and once China’s richest man, has kept a low profile with few public appearances after he publicly criticized China’s regulators and financial systems during a speech in Shanghai in Oct. 2020.
Shortly afterward, the government scuttled a planned initial public offering of Alibaba’s financial affiliate Ant Group. It had been set to raise $34.5 billion in what would have been the world’s largest share offering at the time. Alibaba was later fined $2.8 billion for breaching antitrust rules as Chinese authorities cracked down on the once-freewheeling technology industry.
Despite these setbacks, Alibaba remains one of China’s most valuable companies, with a net worth of $238 billion, making it the third-most valuable company in China behind gaming giant Tencent and beverage company Kweichow Moutai.
In conclusion, Alibaba’s management overhaul is a bold move that is poised to take the company to new heights. Eddie Wu’s appointment as CEO is a clear indication that Alibaba is committed to innovation and growth.
References
- https://companiesmarketcap.com/china/largest-companies-in-china-by-market-cap/
- https://apnews.com/article/alibaba-ipo-taobao-cainiao-capital-fdf5fad762288d52114daed29d160582#:~:text=Alibaba%20Group%20said%20in%20a,Digital%20Media
- https://www.thedrum.com/opinion/2018/11/08/meet-the-18-original-founders-alibaba
- https://www.crunchbase.com/person/eddie-wu
- https://www.businessinsider.com/alibaba-new-ceo-eddie-wu-cofounder-jack-ma-2023-6
- https://deadline.com/2023/01/chinese-entrepreneur-jack-ma-reduces-voting-rights-stake-in-ant-group-1235214000/
- https://deadline.com/2021/12/classic-films-tv-shows-restoration-dgene-mti-film-1234888882/
- https://deadline.com/2021/11/virtual-production-specialist-dgene-series-a-funding-alibaba-1234865635/
