Apr 10, 2024,06:36am EDT
Alibaba co-founder Jack Ma has given his stamp of approval to the Chinese giant’s extensive restructuring efforts and commended the company’s leadership in a memo to employees, as reported by news outlets. This move sparked a surge in shares and marked a notable return to the limelight for the billionaire, who had largely kept a low profile in recent years following a high-profile clash with Beijing.
Key Points:
In a memo spanning about one page, posted on the company’s internal platform, Ma lauded the decision made last year to revamp Alibaba and divide it into six distinct business units.
According to the South China Morning Post, Ma emphasized the transformation of the company from a “cumbersome organization” into a “simple and agile” one, prioritizing efficiency and market responsiveness.
While acknowledging past mistakes and anticipating future challenges, Ma underscored the importance of learning from the past and charting a responsible path forward.
Reuters reported Ma’s recognition of the internal and external pressures faced by Alibaba over the past year, leading to the emergence of a resilient team within the company.
Ma applauded the leadership of CEO Eddie Wu and Chairman Joe Tsai, praising their “admirable courage and wisdom” in steering the company through uncertain times.
Alibaba’s shares in Hong Kong saw a more than 5% increase following the publication of Ma’s memo.
Background:
This memo is said to be the longest communication from Ma within the company’s internal systems in five years, indicating a potential shift in his public profile.
Despite stepping down from his executive chair role in 2019, Ma remains highly regarded within Alibaba and retains a significant stake in the company.
Ma’s recent memo contrasts with an earlier communication from him, which caused confusion regarding Alibaba’s future direction.
Following his departure from Alibaba, Ma’s activities had drawn speculation about his well-being and future plans, with occasional appearances suggesting a possible return to education rather than a prominent business role.
Forbes Valuation:
- With an estimated net worth of $24.5 billion, Jack Ma ranks as the 81st wealthiest individual globally and the 7th richest in China, primarily due to his association with Alibaba and his stake in Ant Group.