Alibaba Group Holding, a leading e-commerce conglomerate, has recently addressed internal concerns and public rumors regarding significant organizational and ownership changes. In an official statement released on the company’s intranet, Jane Jiang, Alibaba’s Chief People Officer, firmly denied the circulating speculations about the company planning to lay off 25,000 employees. Jiang emphasized that these rumors were baseless and that Alibaba had taken legal steps to address the spread of such misinformation.
Simultaneously, the company clarified the intentions behind former chairman and co-founder Jack Ma’s recent actions involving his shares in Alibaba. In her statement, Jiang explained that earlier this year, Jack Ma’s office had contracted a stock agent to sell shares in Alibaba, a decision publicly announced in mid-November in compliance with relevant regulations. The purpose of this planned sale, as Jiang pointed out, was to gather resources to support Ma’s agricultural technology and charity initiatives.
Alibaba’s chairman, Joe Tsai, also commented on Jiang’s post, reflecting on his nearly 25 years with the company. He acknowledged the various challenges Alibaba has faced since its inception but expressed confidence in the company’s resilience and ability to innovate and stand out in the industry.
Jiang addressed the coincidental timing of the public announcement of the share sale plan with Alibaba’s financial report release, which led to some misunderstandings. She clarified that the agreed sale price in August was significantly higher than the current share price, meaning that practically, Ma had not sold any Alibaba shares. This was particularly relevant given that Alibaba’s stock is currently undervalued, making it an unfavorable time for Ma to sell.
This clarification came after Jack Ma’s office had earlier communicated its optimistic stance towards Alibaba, reassuring the market amidst a sell-off of the company’s shares that affected Hong Kong’s key stock index. Following the release of Alibaba’s financial results, which saw a near 10% drop in its Hong Kong shares, Ma’s office reaffirmed his confidence in Alibaba and specified that the share sale was part of a long-term, conditional plan initiated in August, which would not currently reduce his shareholding.
Alibaba, which owns the South China Morning Post, recently announced its decision against fully spinning off its cloud computing unit. This decision came alongside a report of a 9% revenue growth in its September quarter. Despite the challenges and fluctuations in the stock market, Jack Ma’s office reassured stakeholders of his continued belief in Alibaba’s potential and his commitment to maintaining his shareholding in the company.
READ MORE: