Chinese technology giant Alibaba Group Holding Ltd has announced that it will split its business into six independent entities. The move follows a report that chief executive officer (CEO) Daniel Zhang had been delegating more power to the heads of Alibaba's business units, potentially paving the way for spinoffs and independent fundraising. 

The restructuring is aimed at building a more nimble corporate structure and empowering each business unit to become more agile, enhance decision-making and respond faster to market changes.

The six major areas that Alibaba will divide its businesses into are cloud, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics and media and entertainment. Each of these newly created entities will have their own CEOs reporting to their respective boards of directors and will be fully responsible for their performance.

The restructuring will reportedly not affect the listing status of Alibaba's shares in New York and Hong Kong. 

The announcement has come a day after Alibaba co-founder Jack Ma returned to mainland China after almost a year overseas.Ma's return is seen as Beijing's attempt to revive entrepreneurs' confidence following years of regulatory clampdowns and Covid-19 restrictions. 

Alibaba's domestic commerce business will remain a wholly owned unit of the company, while each of the newly created entities will be able to raise funds and pursue initial public offerings when ready, according to Zhang's letter to employees. 

hinese technology giant Alibaba Group Holding Ltd has announced that it will split its business into six independent entities. The move follows a report that chief executive officer (CEO) Daniel Zhang had been delegating more power to the heads of Alibaba's business units, potentially paving the way for spinoffs and independent fundraising. 

The restructuring is aimed at building a more nimble corporate structure and empowering each business unit to become more agile, enhance decision-making and respond faster to market changes.

The six major areas that Alibaba will divide its businesses into are cloud, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics and media and entertainment. Each of these newly created entities will have their own CEOs reporting to their respective boards of directors and will be fully responsible for their performance.

The restructuring will reportedly not affect the listing status of Alibaba's shares in New York and Hong Kong. 

The announcement has come a day after Alibaba co-founder Jack Ma returned to mainland China after almost a year overseas.Ma's return is seen as Beijing's attempt to revive entrepreneurs' confidence following years of regulatory clampdowns and Covid-19 restrictions. 

Alibaba's domestic commerce business will remain a wholly owned unit of the company, while each of the newly created entities will be able to raise funds and pursue initial public offerings when ready, according to Zhang's letter to employees.