Alibaba Group To Re-Organize Into 25 Different Units

By: Talha Bhatti  |   January 10th, 2013   |   Business, News

Jack Ma, CEO of e-commerce giant Alibaba Group, has revealed that the Chinese technology company will be going through a reorganization that will significantly alter the company’s structure. Plans have been laid down to split Alibaba into 25 different units that will be have its own general manager at the helm.

 

Ma announced the news in an email that the Sina News published making it the latest move by the company to guide its own future path after splitting from Yahoo. The division of the company was actually foreshadowed in July when Ma had announced seven groups. At the time the management was worried that all resources had been focused on growth while the quality of online vendors dropped. There were also issues with inter-department communications.

 

Ma claim the reorganization was meant to keep the company nimble and give it the ability tot adapt to the quickly changing e-commerce landscape. By making 25 units Ma claims that each department will have “clear-cut responsibilities” that will translate into “strategic and operational advantage and ensure the sustainability of its growth.”

 

Ma went on to say that, “This is the most difficult reorganization in Alibaba’s 13 years. It’s a culture shift!”

 

The CEO also added that each department would be asked to go beyond their own specific goals and look at how the overall company performed to gauge success.

 

Alibaba Group recently purchased half of Yahoo’s 40% share  in the company leaving the American firm with an overall 23%. Ever since then the Chinese firm has gone through several changes to help define its own future with out Yahoo’s input. The group recently got approval to make the company private again which is seen as another move by management to keep greater control of the firm.

 

Source: Tech Crunch