Alibaba, the biggest tech company in China, plans to restructure into six spin-offs.

Image Credit: Business Today Alibaba, a massive Chinese digital company, has unexpectedly announced that it will divide into six distinct business segments. There is no estimated time frame for when the corporation might issue IPOs for at least five of the six subsidiaries. The divided businesses will concentrate on six segments of the technology industry, such as cloud computing, e-commerce, and logistics. The Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Service Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group are among the new businesses, according to Nikkei Asia. The six subsidiaries will be run by their current chief executive officers and boards of directors and will operate independently of one another. All businesses will be incorporated under the direction of Daniel Zhang, the present CEO, and the Alibaba Group. The Cloud Intelligence Group, which houses the company's cloud and AI operations, will have Zhang as its CEO as well. Image Credit: Financial Times Zhang informed the staff of the upcoming reorganisation in a letter on Tuesday, stating that it will help the business "become more flexible, better decision-making, and enable faster reactions to market changes." The reorganisation is a component of their ongoing transition to a "nimbler organisational structure." The news was made just one day after Jack Ma, the company's flamboyant founder, returned to China from a year-long absence. The severe Covid-19 limitations that hit China's general populace, small businesses, and large enterprises coincided with Ma's travel abroad. Ma's whereabouts throughout the previous year are unknown at this time. Image Credit: The restructure takes place as Alibaba's multi-billion dollar retail division experiences a substantial decline. In response to a slowing economy that was largely attributed to China's divisive zero-Covid policy, consumers all around China tightened their pocketbook reins. One of the biggest tech businesses in the world, Alibaba Group Holding Limited operates across a variety of industries, including cloud computing, the internet, artificial intelligence, and more. Nonetheless, it is primarily known for its electronic payment services and e-commerce operations. The corporation has its corporate headquarters in the Cayman Islands and was founded in Hangzhou. Read More: Tencent & Alibaba AI Tech Tops Chinese Language Comprehension, humans at 3rd Alibaba's ADRs on the NYSE increased by more than 14% after the news and are now trading at $98.52, up from their $86.12 closing price on Monday. With Citigroup's Alicia Yap boosting her target price to $156 in the coming days, analysts believe the stock has much more upside potential.