Core Insights - Alibaba has announced significant management changes alongside its FY2025 annual report, with key executives like Cainiao CEO Wan Lin and Alibaba Entertainment Chairman Fan Luyuan stepping down [1] - The number of Alibaba partners has decreased to 17, down by more than half from its peak, indicating a strategic slimming down amid ongoing challenges [2] - The company has struggled with strategic direction since Jack Ma's departure, facing intense competition in e-commerce and cloud computing, and has been criticized for its inability to adapt quickly to market changes [2][6] Management Changes - The recent management reshuffle includes the exit of nine partners, including notable figures like Peng Lei and Dai Shan, reflecting a shift in leadership dynamics [2] - The appointment of Wu Yongming as CEO signals a change in strategy, emphasizing a transition from a platform giant to a diversified technology group [8][9] Strategic Challenges - Alibaba has faced multiple strategic missteps, including neglecting its core e-commerce platform and failing to capitalize on emerging market trends, leading to significant losses in market share to competitors like Pinduoduo and Douyin [5][6] - The company's attempts at restructuring, such as the split of its various business units, have not yielded the expected results, leading to operational inefficiencies and a lack of cohesive strategy [12][16] Future Directions - Alibaba plans to invest more in AI and cloud infrastructure, with a commitment to exceed the total investment of the past decade within the next three years [9] - The company is moving away from traditional retail strategies, as evidenced by the divestment of underperforming assets like Hema and Intime, and is focusing on online and membership models [11] Organizational Structure - The historical reliance on a decentralized, federated structure has proven ineffective for Alibaba, which is better suited to a centralized management approach [12][16] - The recent leadership changes aim to streamline operations and enhance collaboration across business units, countering the fragmentation caused by previous restructuring efforts [17][18]

Core Viewpoint - The internal analysis by Yuan An highlights Alibaba's decline in growth and innovation since 2017, attributing it to external market slowdowns, failed acquisitions, and a lack of successful internal innovation [1][2]. Group 1: Company Challenges - Alibaba's growth has been hindered by the overall slowdown in the internet sector, with many of its acquisitions, such as Ele.me and Lazada, losing their leading positions post-integration [1]. - The company has faced significant challenges with its acquisitions of Intime and RT-Mart, which resulted in losses, indicating difficulties in successful operational integration [1]. - Internal issues include a lack of successful innovation outside the core e-commerce business, with few independent growth stories emerging within the company [1]. Group 2: Employee and Cultural Issues - Yuan An identifies problems such as reliance on external talent, a decline in the "Alibaba spirit" among new hires, and increased competition leading to higher collaboration costs [2]. - There are concerns about internal performance metrics leading to a culture of short-termism, unclear rewards and punishments, and bureaucratic inefficiencies [2]. - A call for a cultural reset emphasizes the need for a focus on customer-first values, teamwork, and clear strategic direction [2]. Group 3: Leadership and Future Directions - Jack Ma's acknowledgment of the internal challenges reflects a broader recognition of the "big company disease" affecting Alibaba, similar to issues faced by other major Chinese internet firms [4]. - CEO Wu Yongming's recent comments on "restarting" the company indicate a strategic pivot towards embracing AI and revitalizing the management team to foster a startup mentality [4]. - The ongoing organizational changes and the need for internal reform are critical for Alibaba to regain its competitive edge and adapt to the evolving market landscape [4].

Core Viewpoint - The article discusses the challenges faced by Alibaba, particularly the "big company disease," as highlighted by a recent internal post from a departing employee, Yuan An, which has sparked significant discussion within the company [1][2]. Group 1: Issues Identified - Yuan An identifies three main areas of concern within Alibaba: talent management, performance competition, and strategic clarity. He notes a reliance on external talent, a lack of "Alibaba spirit" among new hires, and increased collaboration costs due to ineffective performance incentives [2]. - The internal culture is suffering from issues such as grade inflation, unclear rewards and punishments, and a prevalence of short-term thinking among employees [2]. - There is a broader organizational challenge, with strategic ambiguity, a desire for multiple conflicting goals, and bureaucratic tendencies contributing to a false sense of prosperity [2]. Group 2: Recommendations for Improvement - To address these issues, Yuan An suggests a return to a culture focused on meaningful work, emphasizing customer-first values, teamwork, clear strategy, and passionate dedication [2]. - He advocates for a restructuring of the HR system, management reforms, and a reduction of redundancy in operations, alongside a push for transparency in performance evaluations and promotions [2]. - The company is encouraged to embrace the opportunities presented by AI and adapt to the changing landscape [2]. Group 3: Leadership Response - Alibaba's founder, Jack Ma, acknowledged Yuan An's post, indicating a recognition of the challenges and changes the company is undergoing [3]. - Recent discussions within Alibaba about the "big company disease" reflect a collective challenge faced by major Chinese internet firms, with calls for a return to a startup mentality [3]. - CEO Wu Yongming has expressed a commitment to rejuvenating the company by viewing it as a startup again, focusing on harnessing the potential of the AI era for new growth [3].