This article was last updated on March 29, 2023
Alibaba wants to split into six separate companies
Alibaba Group, the Chinese conglomerate behind AliExpress, has announced plans to divide its operations into six separate divisions, each with its own CEO and board of directors.
While Alibaba’s core e-commerce business is well known, the company is also involved in sectors such as logistics, food delivery, entertainment, and data centers. Of the six divisions, five will have their own listing on the stock exchange. Alibaba CEO Daniel Zhang will remain at the helm of the parent company while also leading the Cloud Intelligence Group, which focuses on artificial intelligence. Zhang stated that the restructuring aims to increase agility, reduce decision-making time, and encourage a return to an entrepreneurial mindset among Alibaba employees.
The company also plans to streamline its middle and back-office functions, but no specifics were given regarding job cuts. The restructuring comes after founder Jack Ma made his first public appearance in China in over a year, amid a crackdown by Chinese authorities on the tech sector. Despite the government’s hardline stance, experts predict a possible easing of restrictions due to China’s need for economic recovery after years of declining growth and strict COVID-19 measures.