March 31, 2023: On Thursday, Alibaba Group attempted is assuring its investors that its decision to overhaul its community and split into six units aimed to make the company more “nimble” with market changes.
“We believe this is permitting all of our businesses to become more agile, enhance their firm decision-making, and respond faster to business changes,” CEO Daniel Zhang told investors.
China’s regulatory crackdown on its technology companies, which has been taking business since 2020, resulted in a nearly $1 trillion wipeout of stocks of the country’s significant companies. Still, analysts told CNBC that Alibaba’s reorganization is seen as a symbol of Beijing softening that stance.
On Thursday’s call, Zhang told investors, “We have been stressing the idea and being a more agile and nimble organization for several years now,” which added that Alibaba’s board would continue to have control over its entities.
“Alibaba Group will be like a holding company that is the controlling shareholder of the firm group firm,” Zhang said. “As to control shareholders, the Alibaba board will keep control over the boards of these recent companies.”
On Thursday, shares of Alibaba listed in Hong Kong increased by almost 3% at the market open, roughly an hour following the call concluded. The stock on Wednesday closed by more than 12% and saw its best day since November 11, 2022.
Chief financial officer Toby Xu stated that Alibaba would ultimately determine entities to maintain control over.
“We will continue evaluating the strategic importance of these firms to Alibaba, and on that basis, we will also decide whether or not to continue to retain control,” Xu said. “That will be an important strategic consideration.”
Nvidia resolve be the ‘grand marshal’ of the A.I. bubble ‘parade,’ stated Josh Brown.
Zhang added that the firm has been working on Alibaba’s “transformation” for years and that separating the entities will lead to a shift in connection with its businesses.
“One of the significant changes will be that each of the segments within the company will each become an independently operating company; hence, the relationship between the group and business group firm will change,” Zhang said.
When asked regarding the timeline of Alibaba’s restructuring, Zhang said the “strategy and company that plan for the business groups will commence immediately.”
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Loud leaders once ruled the boardroom. Charisma was currency. Big talk drove big valuations.
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
May 28, 2025: SpaceX’s latest Starship test flight, conducted on May 27, 2025, ended in failure when the spacecraft’s upper stage broke apart during its descent over the Indian Ocean.
May 27, 2025: Greek Coastguards Charged Over 2023 Pylos Migrant Shipwreck That Killed Hundreds
May 27, 2025: Volvo to Cut 3,000 Jobs in Europe as Part of $1.9B Restructuring Amid EV Slowdown and Tariff Pressures.
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
