Wu, who despatched the letter on Tuesday, his third day within the prime job, additionally mentioned Alibaba would deal with selling younger workers, particularly citing these born after 1985, to kind the core of its business administration groups inside the subsequent 4 years.
Elevate Your Tech Process with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Lucknow | IIML Executive Programme in Data Science | Visit |
| Indian School of Business | ISB Product Management | Visit |
| Indian School of Business | ISB Digital Marketing and Analytics | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
This would assist preserve a “start-up mindset” and forestall the corporate getting “stuck in our old ways”, he mentioned.
The new CEO, one in every of Alibaba Group’s founders and long-time lieutenant of former chief Jack Ma, is laying out his strategic priorities at a key second for Alibaba, which is present process the largest organisational restructure of its 24-year historical past.
Late on Sunday Alibaba additionally introduced that Wu would concurrently function CEO of its cloud computing unit, changing Daniel Zhang.
The news got here as a shock to many, as Zhang had mentioned in June he was stepping away as CEO of Alibaba Group to deal with the cloud division, which is aiming to have an IPO by May 2024.
Discover the tales of your curiosity
The Cloud Intelligence Group, valued at $41 billion to $60 billion this yr, is amongst 5 models Alibaba is spinning off as a part of its restructuring. The cloud unit is Alibaba’s second-biggest income supply after home e-commerce and homes the group’s generative synthetic intelligence mannequin, Tongyi Qianwen.
“Over the next decade, the most significant change agent will be the disruptions bought about by AI across all sectors,” Wu mentioned within the letter.
“If we don’t keep up with the changes of the AI era, we will be displaced.”
Alibaba beat analyst expectations in its first-quarter earnings report final month, however its restoration from a two-year regulatory crackdown has been sophisticated by the twin challenges of rising competitors and a slowing Chinese economic system.
Economic headwinds have helped drive extra home e-commerce customers to low-cost platforms, corresponding to PDD Holdings Pinduoduo and ByteDance’s Douyin, the Chinese model of TikTok, prompting Alibaba’s home e-commerce arm to deal with worth for cash segments.
The cloud unit reported income progress of 4% for the quarter, the smallest among the many group’s six business models, however analysts estimate it’s China’s largest cloud supplier with a 34% market share, forward of Huawei Technologies, Tencent Holdings and Baidu.
Source: economictimes.indiatimes.com