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Alibaba Group has announced a major restructuring to form six different business units and pursue independent fundraising IPOs, marking the most significant overhaul in the company’s 24-year history.
All the new divisions will appoint their own board of directors and CEOs.
The newly formed units will include Cainiao Smart Logistics Group, Digital Media and Entertainment Group, Cloud Intelligence Group, Global Digital Commerce Group, Local Services Group, and Taobao Tmall Commerce Group – the last of which will remain a wholly owned subsidiary of Alibaba Group.
Daniel Zhang will remain chairman and CEO of Alibaba Group, in addition to serving as CEO of the Cloud Intelligence Group.
Taobao Small Commerce Group, Alibaba’s core domestic ecommerce business, will be spearheaded by Alibaba Group co-founder Trudy Dai.
It’s likely that Lazada will be put under the Global Digital Commerce Group. Last year, Tech in Asia analyzed in this report why Alibaba should spin off Lazada to unlock higher potential valuations.
Alibaba’s shares jumped 8% after the plans were made public.
With China loosening Covid restrictions as of late, analysts have predicted that Alibaba will see higher revenue growth starting this year. Its latest quarterly results were strong as the company saw a 138% surge in quarterly income compared to the same quarter in 2022.
See also: Alibaba’s financial health in 5 charts
Editing by Thu Huong Le and Arpit Nayak
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