Chinese tech giant Alibaba is restructuring
According to the news in the company-owned South China Morning Post, Alibaba CEO Daniel Cang Yong announced in a letter to employees that the company will be divided into 6 business groups that will operate independently of the holding. umbrella.
Accordingly, Alibaba’s flagship e-commerce platforms Taobao-Tmall, cloud computing service provider Cloud Intelligence, smart logistics service provider Cainiao Smart Logistics, Global Digital Business operating in the field of digital businesses, the local technology service provider Local Media & Services and Digital Media and Entertainment groups, which include initiatives from the entertainment industry, will operate as independently managed companies.
The new structure is intended for each business group to operate independently in the market, trace its own path of competition and generate its own resources for financing, including public offerings.
In the letter, Cang stated that with the restructuring, the holding company’s brokerage and back office functions will be reduced: “This transformation will make our businesses more agile, strengthen the decision-making process and allow us to react more quickly to changes.” in the market.” used his statements.
In the new structure announced with the formula “1+6+N”, the roof holding company is protected; The 6 business groups will be led by an independent CEO who will be responsible for their own profits and losses, making operational decisions such as research and development, hiring and firing. “N” stands for potential new ventures and partnerships to be established by the company.
In the new structure, Cang will continue to lead the cloud computing unit as CEO and general holding company, while Trudy Dai will take over management of e-commerce platforms, Yu Yongfu’s local technology services , Van Li intelligent logistics, Ciang Fan global digital business and Fan Luyuan digital media units.
REMEMBER THE ALPHABET
The restructuring of the company, which has approximately 200,000 employees and a market capitalization of more than $250 billion, is considered the largest corporate transformation the company has undergone since its founding in 1999.
Alibaba’s new structure resembles the business structure created by US internet company Google when it established its umbrella holding company “Alphabet” in 2015 to reorganize its growing and diversified operations over time.
Under the umbrella of Alphabet, Google’s search engine, the healthcare data, cloud computing, research and development, investment and capital units were structured as separate companies.
AFTER JACK MA
Alibaba founder Jack Ma stepped down as chairman of the board in 2018 and transferred his powers to the company. It was alleged that the Chinese government forced Ma out of the company.
After leaving the company, Ma, who founded Ant Group, which is a partner of Alibaba, which brings together digital payment service Alipay and related assets, transferred his control rights there with the share deal struck earlier this year.
Ma mysteriously disappeared in October 2020 after criticizing market regulators and public banks in China and did not appear in public for a long time.
After the event, the government halted Ant Group’s bilateral public offering, which was scheduled to be listed on the Hong Kong and Shanghai stock exchanges in October 2020 and was expected to generate $39.7 billion in proceeds.
The Chinese government had increased its regulatory controls and interventions for internet and technology companies since late 2020. (BRITISH AUTOMOBILE CLUB)