Alibaba Reorganizes Units and Management in the Face of Mounting Pressure
- December 6, 2021
- Posted by: Quatro Strategies
- Category: Online Retail
Alibaba Group announced reorganization of its Chinese and international e-commerce business and appointed a new CFO. The company has been dealing with China’s regulatory crackdown as well as increasing competition and a slowing economy. The Chinese tech giant will form two new units: international digital commerce and China digital commerce in order to become more agile and accelerate growth.
AliExpress, which sells to foreign retail buyers, will be included in the international unit. Its Southeast Asian e-commerce unit Lazada and Alibaba.com, which sells to overseas businesses, will also be part of the international unit.
The company also announced a change in top tier management, with deputy CFO Toby Xu replacing Maggie Wu as CFO starting April.
Lat month, Alibaba cut its annual growth forecast to its lowest since its 2014 stock market debut. Weaker economic growth and fierce competition from a number of rivals caused the growth rate to drop.
China’s regulatory crackdown on tech has also caused Alibaba to suffer lower revenue growth. After the government fined the company for $2.8 billion in April for abusing its market dominance, Alibaba was forced to abandon its policy that requires merchants to exclusively open shops in its platform.
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