Alibaba's Eddie Wu To Lead Primary E-Commerce Business, Replacing Trudy Dai Amid Growth Concerns

In a recent announcement, Alibaba Group Holding Ltd. BABA on Wednesday confirmed that its CEO, Eddie Wu, will take over the reins of the company’s primary e-commerce business. This decision comes amidst concerns over the company’s slowing growth and marks a significant change in leadership.

What Happened: Wu is replacing Trudy Dai, a longtime executive, at the helm of the company’s e-commerce division. This comes as Alibaba faces challenges linked to stagnant growth in China’s largest online marketplace, reported Bloomberg

Dai, one of Alibaba’s earliest employees, will now assist in setting up a firm to manage non-core assets. Wu, along with other executives, has stressed the urgency to reevaluate their investment portfolio, to identify and derive value from Alibaba’s assets.

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Why It Matters: This leadership change follows a series of events that have marked Alibaba’s recent trajectory. In June 2023, Wu assumed the CEO role, sparking interest in the potential for technological innovations under his leadership. However, the company’s performance has remained a topic of concern.

In November, Charlie Munger, the late vice chairman of Berkshire Hathaway, labeled his investment in Alibaba as his “worst trade,” indicating a lack of confidence in the company’s stock performance.

More recently, Alibaba announced a reduction in its stake in Chinese EV manufacturer XPeng Inc., underlining the company’s efforts to reshape its investment strategy.

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