Alibaba’s Wu Lays Out Strategic Priorities For Staff-User First, AI-Driven
by upasana sarbajna Business 13 September 2023
“This would help maintain a “start-up mindset” and prevent the company from getting “stuck in our old ways,” Wu mentioned.
The new CEO of the Alibaba Group, Eddie Wu, has mentioned to the staff that the tech company’s two major strategic focuses to move forward will be “AI-driven” and “user first,” as per the internal letter that was reviewed by Reuters.
The letter, which was sent by Wu on Tuesday, which was the third day in his top job, also added that Alibaba will be focusing on the promotion of young employees, particularly citing the ones that were born after 1985. This young workforce will be forming the core of the business management team of the company in the upcoming four years.
The new CEO, one of the founders of the Alibaba Group, and the long-time lieutenant of the former chief, Jack Ma, is putting out his strategic priorities at a crucial moment for Alibaba, the company that is going through the largest organizational restructuring in its 24 years of history.
Later on Sunday, Alibaba Group also announced that Wu is also set to serve as the CEO of the cloud operating unit of Alibaba, replacing Daniel Zhang.
This news came as a shock to many, as Zhang announced back in June that he is, in fact, stepping down as the CEO of Alibaba to focus more on the cloud computing unit, which is anticipating having an IPO within Mya 2024.
The Cloud Intelligence Group, which is valued at $41 billion this year, is one among the five units Alibaba is wheeling off as a part of its plan of restructuring.
“The cloud unit is Alibaba’s second-biggest revenue source after domestic e-commerce and houses the group’s generative artificial intelligence model,” said Tongyi Qianwen.
“Over the next decade, the most significant change agent will be the disruptions brought about by AI across all sectors,” Wu added in the letter. “If we don’t keep up with the changes of the AI era, we will be displaced.”