Alibaba Executive Will Step Down To Promote Younger Managers Amid Restructuring Efforts

By Thea Felicity

Mar 01, 2024 12:40 PM EST

(Photo : Photo by GREG BAKER/AFP via Getty Images)
Two Alibaba employees chat behind an Alibaba sign outside the company's office in Beijing on April 13, 2021.

Yu Yongfu, who took the helm of Alibaba Group Holding's Local Services Group (LSG) after the company's restructuring last year, is set to leave the unit by the end of March, as reported by the South China Morning Post.

The reason behind Yongfu's departure is that Alibaba LSG is undergoing changes as part of Alibaba's broader restructuring efforts. This particular division of the company oversees the delivery service and the mapping platform Amap.

Yu will transfer his chairman and chief executive roles to a younger cadre of managers, with Wu Zeming assuming leadership at Ele. Liu Zhenfei and I will take senior positions at Amap. 

Despite stepping down, the 47-year-old Yu will continue as a partner at Alibaba, the parent company of South China Morning Post. Details regarding the succession of senior roles within LSG remain undisclosed.

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Alibaba's Restructuring Efforts

Alibaba's recent restructuring efforts are part of its commitment to fostering a new generation of leaders, aligning with CEO Eddie Wu Yongming's vision to restore the organization. Wu aims to transition the core management team to millennials within four years, as outlined in an internal memo circulated in September.

Besides LSG, Taobao and Tmall Group, Alibaba's flagship e-commerce entities, appointed six executives last December to nurture emerging talent.

Despite the impending leadership changes, LSG, under Yu's guidance, has experienced consistent growth, with a 13% year-on-year revenue increase reported in the latest quarter. Notably, Amap boasts over 700 million monthly active users, placing it among the top Chinese apps alongside WeChat, Douyin, Taobao, and Alipay.

READ MORE: Alibaba's Response to SEC Investigation Reveals Chinese Government Ownership in Over 12 Business Units

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