Jack Ma, the co-founder of Alibaba Group Holding Ltd., has made a notable return to the spotlight by penning a lengthy memo expressing support for the e-commerce giant’s ongoing restructuring endeavors. The memo, shared internally with employees, marks a significant departure from Ma’s recent low profile.
Following the memo’s circulation, Alibaba’s Hong Kong-listed shares experienced a notable surge of 5%, reflecting positive investor sentiment towards the company’s strategic realignment. This public show of confidence from Ma comes a year after Alibaba’s announcement of a major restructuring plan involving the division of the company into six distinct units—an initiative described as the most substantial shake-up in Alibaba’s 25-year history.
Since the restructuring announcement, Alibaba has navigated through a turbulent period that included appointing a new CEO, grappling with the initiation and subsequent abandonment of listings for its cloud and logistics units, and facing increased competition in the e-commerce sector from cost-effective rivals such as PDD Holdings and Douyin, the Chinese counterpart of TikTok owned by ByteDance.
In the one-page memo, Ma commended the leadership of CEO Eddie Wu and Chairman Joe Tsai, underscoring the benefits of the division into six divisions in enhancing decision-making agility and customer-centricity within the organization. Ma emphasized the necessity of addressing past challenges promptly while simultaneously implementing reforms geared towards future growth and success.
“We must not only have the courage to admit and correct yesterday’s problems in a timely manner but also make reforms for the future,” Ma conveyed in the memo, highlighting the imperative of embracing change and innovation amidst internal and external pressures facing the company.
Ma’s reflections within the memo also acknowledged the resilience and determination exhibited by Alibaba’s workforce amid a backdrop of uncertainties and challenges. “This year, amid the many doubts and pressures on the company internally and externally, I saw the birth of a strong and brave Alibaba team,” Ma noted, expressing confidence in the company’s ability to navigate and thrive in a rapidly evolving business landscape.
The public endorsement from Ma signifies a renewed sense of optimism surrounding Alibaba’s future trajectory and reinforces the company’s commitment to adaptability and resilience in response to market dynamics.
