Alibaba Group is refocusing its operations by fostering internal collaboration across its various business units and emphasizing core strategic priorities, particularly in e-commerce and cloud computing. CEO Eddie Wu Yongming recently told employees that the company would concentrate its efforts on a few key initiatives that span multiple business groups. This internal shift marks a significant move following the group’s sweeping 2023 restructuring, which divided its vast operations into six distinct units.
As part of this renewed strategy, employees across different business divisions are now allowed to communicate through a shared internal website, breaking down silos and encouraging collaboration. This development comes just ahead of Alibaba Day on May 10, an annual event designed to build employee morale and a shared corporate identity. This year, the company has recreated the flat where co-founder Jack Ma first launched Alibaba 26 years ago, now serving as a symbolic site on the company’s campus.
CEO Wu emphasized that Alibaba’s accumulated technology, talent, and resources are crucial assets in navigating the current era, particularly as artificial intelligence becomes increasingly central to innovation. He noted that the AI revolution offers powerful opportunities to unify Alibaba’s diverse product ecosystem and develop enhanced user experiences and value.
Alibaba has notably reversed its previous plan to fully dismantle the group. Its cloud division, Alibaba Cloud, which had been poised to spin off, will now remain within the company. Similarly, Cainiao, its logistics arm, has abandoned its initial public offering. These changes reflect a strategic pivot toward reinforcing Alibaba’s foundational strengths rather than fragmenting its operations.
The company is now guided by a “user first, AI-driven” approach, signaling a deeper investment in technology-driven solutions across its platforms. Wu called on employees to shed any complacency tied to past successes and instead adopt a start-up mentality. He stressed the importance of a “zero-to-one” mindset, encouraging innovation from the ground up in response to the rapidly evolving global tech landscape.
On the market front, Alibaba’s shares rose nearly 1 percent on Friday morning, reaching HK$122.60. The modest uptick reflects cautious optimism as the company reorients itself around its historical core competencies while actively pursuing AI-led innovation and cross-unit synergies.
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