Alibaba Partnership Streamlined to 17 Members as Nine Partners Step Down, Reflecting Focus on Core Business.

Alibaba Partnership Streamlined to 17 Members as Nine Partners Step Down, Reflecting Focus on Core Business.

Alibaba Group Holding Ltd. has significantly reshaped its influential partnership system, reducing its membership from 26 to 17 members. This move, driven by a focus on international expansion and artificial intelligence (AI), reflects the company's strategy to reignite growth after regulatory scrutiny. The company aims to consolidate its strengths in online retail and AI development [1].

The restructuring comes on the heels of Alibaba's strong fiscal year 2025 performance, with revenues rising by 6% to 996.4 billion yuan ($138.9 billion) and net income soaring by 77% to 125.98 billion yuan. This growth was driven by robust performance in Alibaba's international e-commerce operations, which reported a 29% jump in revenue for the fiscal year ended March [1].

The leadership changes include the promotion of Jiang Fan to the company’s top leadership circle. Jiang Fan, who was previously named head of Alibaba International Digital Commerce Group, will now oversee Ele.me and Fliggy, reflecting Alibaba's strategic shift towards consolidating its e-commerce and local services divisions [1]. This move aligns with Alibaba's "User First, AI-Driven" approach and focus on international expansion.

The company has also divested non-core assets such as Sun Art and Intime Department Store, aiming to improve efficiency and focus on its core strengths. This strategy is part of a broader effort to optimize holistic value creation across Alibaba's diverse ecosystem [2].

Alibaba's investment in AI continues to be a significant driver of growth. The company has seen seven consecutive quarters of triple-digit growth in AI-related revenue within its Cloud Intelligence Group. This investment is part of Alibaba's broader strategy to leverage AI as both a core driver of business growth and a transformative force for the future [2].

Alibaba's focus on AI and international expansion is evident in its strategic execution and business updates. The company's AI-driven strategy aims to capture the next wave of growth, driven by the rapid evolution of AI technologies. Alibaba's open-source AI models, such as Qwen3, have set new benchmarks in the industry and have been downloaded over 300 million times globally [2].

In conclusion, Alibaba's streamlined partnership and focus on core businesses reflect the company's strategic shift towards international expansion and AI-driven growth. The company's strong financial performance and continued investment in AI position it well to capitalize on the growth opportunities brought by these technologies.

References:
[1] https://www.caixinglobal.com/2025-06-27/alibaba-streamlines-leadership-amid-ai-and-global-push-102335179.html
[2] https://www.alizila.com/aliviews-alibaba-joe-tsai-eddie-wu-2025-letter-shareholders/