Alibaba Executive Jiang Fang addresses staff concerns over Ma’s share sale and company’s future
In a move to address ongoing unease within the e-commerce giant, Alibaba partner and chief talent officer Jiang Fang has explained the “coincidence” between the disclosure of former chief Jack Ma’s family trust’s plan to sell some shares in the firm and the company’s decision to scrap its cloud unit’s listing.
In an internal post on the firm’s intranet, Jiang stated that Ma’s office had planned earlier this year to sell some shares to reinvest in agriculture and public welfare projects. They were required by U.S. securities rules to disclose the plan by mid-November, she explained.
Ma’s share sale plan and Alibaba’s financial report release
Jiang emphasized that the disclosure of Ma’s share sale plan on November 16 was simply a matter of timing, coinciding with the company’s scheduled release of its financial report. She stressed that the company’s brokers were unaware of the disclosure date, leading to the “severe misunderstanding”.
Investors’ reaction to Alibaba’s cloud unit spin-off cancellation and Ma’s share sale plan
Investors reacted negatively to Alibaba’s abrupt decision to cancel plans to spin off its cloud and groceries businesses, wiping out some $20 billion off the company’s market value. Analysts also noted that the regulatory filing disclosing Ma’s family trust’s intention to sell 10 million American Depository Shares in Alibaba further dampened investor sentiment.
Jiang addresses rumors about Ma’s commitment to Alibaba and layoffs
Jiang reiterated Ma’s continued support for Alibaba, highlighting his positive outlook on the company. She also refuted rumors of a planned layoff of 25,000 employees, asserting that Alibaba had filed a police report to address the matter.
Alibaba’s restructuring and leadership changes
In March, Alibaba announced plans to restructure its business, breaking the company up into six units and carving out the cloud business as a separate entity. The company has also experienced some leadership changes, with Eddie Wu assuming the CEO role in September and Daniel Zhang stepping down as cloud unit head.
Conclusion
Jiang’s internal message aimed to address concerns among Alibaba employees and clarify the circumstances surrounding Ma’s share sale plan and the company’s strategic decisions. The company continues to navigate a period of transition as it adapts to changing market conditions and leadership changes.
FAQ
Jack Ma’s family trust sold shares in Alibaba to reinvest in agriculture and public welfare projects.
Investors wiped some $20 billion off Alibaba’s market value after the company abruptly scrapped plans to spin off its cloud and groceries businesses.
Jiang Fang said that the disclosure of Ma’s share sale plan was simply a matter of timing and that the company’s brokers were unaware of the disclosure date.
Jiang Fang reiterated Ma’s continued support for Alibaba and highlighted his positive outlook on the company.
Alibaba refuted rumors of a planned layoff of 25,000 employees and asserted that the company had filed a police report to address the matter.
Alibaba is breaking the company up into six units and carving out the cloud business as a separate entity.
Eddie Wu is the new CEO of Alibaba.
Daniel Zhang stepped down as cloud unit head in September, just two months after announcing that his new focus would be cloud computing.
