Jakarta, CNBC Indonesia – Alibaba Group’s new CEO, Eddie Wu reveals the company’s new strategy under his leadership. One of them is prioritizing young employees as leaders.
Wu officially became CEO of Alibaba Group at the end of last week. In an internal memo cited by Reuters, he revealed the company’s new direction to employees.
One of Wu’s promises is to prioritize young employees. He promises greater promotion opportunities to young employees, especially those born after 1985. Young employees will form the core business management team at Alibaba Group in the next 4 years.
This commitment, he explained, allows Alibaba to continue to maintain a “startup way of thinking” and prevent the company from “getting stuck in the old way.”
In the memo, Wu also stated that the new focus of the company founded by Jack Ma was “users” and “artificial intelligence.”
Wu was previously famous as Jack Ma’s right-hand man. He will lead a major restructuring of Alibaba, which has been around for 24 years.
In addition to leading the group, Wu will also assume the CEO position at Alibaba’s cloud computing business.
Previously, Alibaba announced that the company’s cloud business would be handed over to Daniel Zhang, whose position as group CEO was replaced by Wu.
Alibaba’s share price fell after the announcement of Zhang’s resignation from the position of CEO of Alibaba’s cloud business. Zhang was previously expected to lead cloud company Alibaba until the IPO plan was realized in May 2024.
According to Reuters, Alibaba’s The Cloud Intelligence Group is one of five Alibaba business units that will be spun off as independent companies. This business unit is estimated to be worth US$ 41 billion to US$ 60 billion.
Alibaba’s business unit is the company’s largest source of revenue after its domestic e-commerce business in China. The artificial intelligence (AI) technology development company, Tongyi Qianwen, is included in this business unit.
“In the next decade, the most significant change will be disruption by AI in all sectors,” Wu said in an internal memo to employees quoted Reuters. “If we don’t keep up with the changes in the AI era, we will be displaced.”
Alibaba is currently facing two main business challenges, namely increasingly fierce competition and slowing Chinese economic growth.
China’s slowing economic growth is pushing Chinese consumers to cheaper platforms such as Pinduoduo and Douyin, a TikTok-like app for the Chinese market. As a result, Alibaba also had to shift its focus to the affordable product segment.
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