Alibaba is being divided into six independent companies
Daniel Zhang, the CEO of Alibaba, informed his employees on Tuesday, March 28, that this Chinese commerce and service giant will operate as a holding company in the future, consisting of six distinct groups: the Cloud Computing Group, the Taobao Tmall Commerce Group, the Local Services Group, the Cainiao Smart Logistics Group, the Global Digital Commerce Group, and the Digital Media and Entertainment Group.
Each company will have its own CEO and board of directors. The Alibaba Group, managed by Zhang, will be at the top as a holding company. He will also head the Cloud Intelligence Group. Zhang stated that the main goal of these reforms is to make our organization more flexible, shorten decision-making paths, and make responses quicker.
He also announced that the administrative section of the company will be smaller, but did not provide any details about job reductions. Following this announcement, Alibaba’s shares in the New York Stock Exchange increased by more than six percent just before the market opened.