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Alibaba to break up business into six units, seek IPOs | CNN Business

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Alibaba Group plans to split its business into six main units covering e-commerce to cloud in the biggest restructuring of its 24-year history

Five of the business units will explore fundraising or initial public offerings, the company said Tuesday. The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group, it said in a statement. Each will be managed by its own CEO and board of directors.

Each business group, he said, had to actively tackle the rapid changes in the market and each Alibaba employee had to “return to the mindset of an entrepreneur.” He also said that the company would “lighten and thin” its middle and back office functions, but did not detail job cuts. News of the restructuring comes one day after Alibaba founder Jack Ma was spotted at a primary school in Hangzhou, marking his first public appearance in mainland China in over a year.

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This a great move and will hopefully set an example for Amazon, Facebook, Microsoft, Google and co. It is time that these companies break themselves or face monopolistic oversight.

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