CNN
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Alibaba has reshuffled its high ranks after the stellar efficiency of a competitor caused a stir on the tech big.
Eddie Wu, Alibaba Group CEO, will now additionally head the agency’s e-commerce enterprise, changing Trudy Dai, who has been with the corporate for over 20 years, in accordance with an inner letter from Joe Tsai, chairman of Alibaba Group, which was seen by CNN.
Dai, who’s one among Alibaba’s 18 co-founders, can be organising an asset administration firm for the group, the letter stated.
Shares in Alibaba (BABA) had been up over 3% in Hong Kong on Wednesday.
The shakeup comes weeks after billionaire co-founder Jack Ma known as for “change” on the firm, because the dramatic success of rival PDD (PDD), the group behind Chinese online shopping giant Pinduoduo and US-based retail upstart Temu, rattled China’s e-commerce trade.
PDD’s inventory has skyrocketed 77% thus far this yr, permitting it to surpass Alibaba in market capitalization for the primary time final month.
The shock administration change comes simply three months after Wu replaced Daniel Zhang to change into Alibaba Group’s fourth CEO in its 24-year historical past. He additionally took over as head of the cloud division after Zhang’s surprise exit from the unit.
“Eddie has … navigated robust trade-offs and made troublesome however essential selections,” Tsai stated in his letter. “Eddie’s management of each Alibaba Cloud and TTG will guarantee whole concentrate on, and vital and sustained funding in, our two core companies of cloud computing and e-commerce, in addition to enabling TTG to remodel via know-how innovation.”
TTG refers back to the Taobao and Tmall Group, which incorporates Alibaba’s on-line procuring platforms.
Alibaba’s shares have tumbled 18% thus far this yr because it battles considerations over a sweeping restructuring, a leadership shuffle and fierce competitors.
Final month, Ma urged staff to “pay any worth and sacrifice” to assist reform the corporate after PDD’s efficiency brought about nervousness.
PDD, which was based in 2015, has loved a bumper yr. It has additionally attracted worldwide consideration for its launch of Temu, an inexpensive on-line superstore that has change into hugely popular in markets comparable to the US and Australia. Temu sells every part from dwelling items to attire and electronics.