A trader works at a post where Alibaba is traded on the floor of the New York Stock Exchange (NYSE) on March 28, 2023 in New York City, USA.Reuters/Brendan McDiarmid
Brendan McDiarmid | Reuters
BEIJING – Alibaba Group CEO Eddie Wu replaces Trudy Dai in the Chinese internet technology giant's latest management shake-up this year to lead the company's Taobao and Tmall e-commerce companies. He will take over the role of the top executive of the business.
Dai, one of Alibaba's 18 co-founders, plans to 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 made Alibaba so successful faces challenges from emerging competitors such as PDD as Chinese consumption growth remains weak.
PDD's U.S.-listed shares have risen more than 80% since the beginning of the year, and the company's market capitalization exceeds Alibaba's. By contrast, shares of the company founded by Jack Ma have fallen about 14% since the beginning of the year.
A factor in the recent decline in Alibaba's stock price was news last month that Alibaba had withdrawn plans to list its cloud business in response to U.S. restrictions on exports of advanced chips to China.
In March, Alibaba announced a major reorganization into six divisions, paving the way for a separate stock listing, especially for its cloud business.
Mr. Wu became acting chairman and CEO of Alibaba's Cloud Intelligence Group in September after Mr. Zhang abruptly left the business unit.
“Alibaba Cloud and [Taobao and Tmall Group] Tsai's letter states that TTG will fully focus on the company's two core businesses of cloud computing and e-commerce, ensuring significant and continued investment, and enabling TTG to transform through innovation. It includes,” he said.
“Soon, we will be empowering a new group of management leaders who have developed foundational skill sets and experience from the bottom up.”
The letter said Dai had “accomplished” the company's mission for Taobao and Tmall, and that his new role at the asset management company would allow him to “play to his strengths.”
Alibaba said in its most recent earnings call in mid-November that it plans to monetize non-core assets, saying it had $67 billion in stocks and other investments on its balance sheet. Ta.
Tsai's letter does not provide details about these non-core assets.
