China’s biggest tech conglomerate, Alibaba, will reorganize its businesses into six “independently run entities to shorten its decision-making processes”, according to a report by the South China Morning Post (which is owned by the company), that quoted Alibaba chief executive Daniel Zhang as saying the move would not affect the company’s stock, which is listed in New York and Hong Kong.
The six new entities would be Cloud Intelligence Group, e-commerce under Taobao – TMall (which draws 70% of group revenue), Cainiao’s Smart Logistics Operations, Local Services group, Global Digital Business Group, and the Digital Media and Entertainment Group, according to the report, which said decisions on hiring and firing, research, profit and losses would be decided by heads of each business unit to enhance decision-making and enable faster responses to market changes, because the group’s size (with 200,000 employees) “severely restricted” its agility, responsiveness and capacity for innovation.
Read the full report: The SCMP.
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