Alibaba Reshapes Leadership and Partnership to Drive AI and Global Growth

Alibaba Streamlines Leadership to Accelerate AI and Global Growth

Alibaba Group has made a significant shift in its leadership structure, cutting nearly one-third of its partnership members and promoting Jiang Fan, a key figure in its international e-commerce division, to the top leadership circle. This move highlights the company’s sharpened focus on expanding globally and advancing artificial intelligence (AI) initiatives.

In its latest annual report, Alibaba disclosed a reduction in partners from 26 to 17, down from 28 two years ago. This restructuring simplifies the governance framework under Chairman Joe Tsai and CEO Eddie Wu, consolidating decision-making power and emphasizing core business areas.

Refined Partnership Structure Reflects Strategic Priorities

Alibaba’s partnership system, established in 2010 by founder Jack Ma, differs from a traditional board of directors. It consists of senior executives and key business leaders, with a small Partnership Committee holding effective control over director nominations. Alongside permanent partners Jack Ma and Joe Tsai, the committee now includes CEO Eddie Wu, Shao Xiaofeng, and Jiang Fan.

Changes in the partnership lineup have historically mirrored Alibaba’s strategic shifts. The current contraction follows a period of regulatory challenges and aims to align leadership with its renewed focus on international markets and AI-driven growth.

Leadership Changes Highlighted by Jiang Fan’s Return

Several prominent figures exited the partnership in this overhaul, including co-founder Lucy Peng, former CEO Daniel Zhang, and ex-CFO Maggie Wu. Jiang Fan’s promotion marks a notable comeback. At 39, he is the youngest member of the committee. Jiang joined Alibaba in 2013, became a partner in 2019, but was removed in 2020 following a personal scandal. He returned in 2024 after leading the international e-commerce unit, which achieved a 29% revenue increase for the fiscal year ending March—well ahead of the 3% growth from the domestic Taotian Group.

Since rejoining the partnership, Jiang has taken greater responsibility, now leading a consolidated e-commerce division and overseeing Ele.me, Alibaba’s food delivery service, as well as the travel platform Fliggy.

AI and User-Centric Strategy at the Forefront

The leadership reshuffle aligns with Alibaba’s “User First, AI-Driven” strategy. The company plans to invest more in AI infrastructure over the next three years than it has in the past decade. Alibaba’s Cloud Intelligence Group has already reported seven consecutive quarters of triple-digit growth in AI-related revenue, underlining the importance of AI to future growth.

Financially, Alibaba posted a 6% rise in revenue to 996.4 billion yuan ($138.9 billion) and a 77% increase in net income to 125.98 billion yuan for the fiscal year. The overseas e-commerce unit is expected to turn a quarterly profit in the coming fiscal year.

Streamlining Operations and Improving Efficiency

Alibaba has also been trimming non-core assets, selling stakes in Sun Art Retail and Intime Department Store as part of a broader effort to improve efficiency. Additionally, the grocery chain Freshippo recorded its first-ever annual adjusted profit, signaling progress in operational performance.

Executives and strategists looking to understand Alibaba’s evolving approach can observe how the company is balancing leadership consolidation with aggressive investment in AI and global markets. This strategy may serve as a valuable case study in aligning governance structures with shifting business priorities.

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