According to March 28 reports, Alibaba will reorganize its businesses into six independently run entities: Cloud Intelligence Group, e-commerce under Taobao-Tmall, Cainiao's smart logistics operations, Local Services Group, Global Digital Business Group, and Digital Media and Entertainment Group.
After the company reduced its headcount by about 20,000 in 2022, there were concerns among some of its nearly 240,000 employees that had to face the tests of market forces, including the possibility of seeking initial public offerings IPOs.
A senior manager from Alibaba said that the company was worried about if it was abandoning its yearslong platform strategy and if there will be substantial layoffs in the central platform.
The restructured 2021 moves of Alibaba saw a shift away from CEO Daniel Zhang's centralized approach. One of the company's original members and an Alibaba founder Jack Ma student, Trudy Dai took over a new China digital commerce team in early 2021, weakening Zhang's influence.
The restructure of the company slashed Zhang's powers, who faced flak for failing to boost the share price. After the restructure, the company will follow a holding company management model overseen by Zhang.
While the Chair and CEO of the Alibaba Group, Zhang will also be the CEO of Cloud Intelligence Group.
Dai will lead the main revenue driver of Alibaba's main revenue driver, Taobao Tmall Commerce Group. Price Action: BABA shares traded down by 1.18% at $97.15 on the last check Wednesday.