Chief Financial Officer Maggie Wu is set to step down from her role at Alibaba as the company reorganizes its e-commerce team and announces a new CFO.  

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The changes come in the face of increasing competition in China, slowing growth, and a plummeting stock price.

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Effective 1 April 2022, Toby Xu, currently the deputy chief financial officer, will succeed Maggie, Alibaba said.  

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On Monday, the company said it would combine its various Chinese e-commerce units into one from next year and form a new international digital commerce team.

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The international unit will include AliExpress, its Southeast Asian e-commerce business Lazada, and Alibaba (NYSE:BABA).

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Analyst Xiaoyan Wang said, “This could possibly unlock more synergies via cross-selling and integration of supply chain.”

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The announcements are in line with Alibaba’s recent broad shift in governance reported in November by The Wall Street Journal.

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The Journal further reported the adjustments of Alibaba’s organizational structure to give more power to the heads of each business unit and make the company more agile.

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WHAT HAPPENED

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The group, founded over two decades ago by Jack Ma, has been under immense pressure since Ma criticized Chinese regulators in a Shangai speech in 2020 that led to the suspension of sister company Ant Group’s blockbuster IPO.  

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Since the initial public offering was derailed, Alibaba’s U.S. -listed shares have tumbled 64%. Alibaba was also fined a record $2.8 billion for antitrust abuses this year.

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In addition, the most recent headwind the stock is facing is rooted in broader concerns that U.S.-listed Chinese companies may be forced, in time to ditch their New York listings amid a tough regulatory environment on both sides of the pacific.

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IN CLOSE

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On Monday, Alibaba’s Hong-Kong listed stock dropped 5.6%, with the group’s U.S.-listed shares edging up 2% in premarket trading after an 8.2% tumble on Friday.  

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Shares are trading at their lowest levels since spring 2017, having fallen more than 50% this year.

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