Trader works on the spot where Alibaba trades on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 28, 2023. Portal/Brendan McDermid
Brendan Mcdermid | Portal
BEIJING – Alibaba Group CEO Eddie Wu is taking the leadership role at the company’s Taobao and Tmall e-commerce businesses, replacing Trudy Dai in the Chinese internet technology giant’s latest management shakeup this year.
Dai, one of Alibaba’s 18 co-founders, will help set up an asset management company, according to an internal letter from Alibaba Chairman Joe Tsai obtained by CNBC.
The e-commerce business that once helped Alibaba thrive faces emerging rivals like PDD as consumer growth in China remains sluggish.
PDD’s U.S.-listed shares have gained more than 80% so far this year, making the company’s market capitalization higher than Alibaba’s. In contrast, the company founded by Jack Ma has seen its shares fall about 14% year-to-date.
Adding to the recent decline in Alibaba shares was news last month that the company had scrapped plans to list its cloud business due to U.S. restrictions on exports of advanced chips to China.
Alibaba announced a massive restructuring into six units in March, paving the way for individual listings, particularly for its cloud business.
Wu became vice chairman and CEO of Alibaba’s Cloud Intelligence Group in September after Zhang abruptly left the business unit.
“Eddie’s leadership at both Alibaba Cloud and [Taobao and Tmall Group] “We will ensure full focus on and significant and sustained investment in our two core businesses of cloud computing and e-commerce, enabling TTG to transform through technological innovation,” Tsai’s letter said.
“Soon we will be empowering a new cohort of leaders who have developed foundational skills and experience from the ground up.”
Dai has “accomplished” the company’s mission on Taobao and Tmall, and her new role at the asset management company would allow her to “play to her strengths,” the letter said.
During Alibaba’s most recent earnings call in mid-November, the company said it plans to monetize its non-core assets, noting that its balance sheet in stocks and other investments is $67 billion.
Tsai’s letter did not provide details about these non-core assets.
Originally posted 2023-12-20 04:34:11.