A former senior product executive at DingTalk, Alibaba’s enterprise messaging unit, published a lengthy internal letter upon leaving the company, criticizing Alibaba’s cultural erosion, failed M&A strategy, and lack of innovation. The post prompted a rare response from Alibaba founder Jack Ma.
Why it matters: The memo has triggered wide internal and public reflection on the company’s direction. Once celebrated for its mission-driven culture, Alibaba is now facing mounting scrutiny over its bureaucracy, stagnation, and a lack of clear strategic direction.
Details: The former executive, known internally as Yuan An, wrote a nearly 10,000-character post outlining Alibaba’s decline in values and strategic focus since 2017.
- He criticized the company’s emphasis on KPI-driven growth, saying it now prioritizes data operations over long-term product building and customer service.
- He named failed acquisitions – including Ele.me, Lazada, and Youku – as examples of Alibaba’s lack of patience and strategic misalignment.
- Internally, he cited talent dilution, performance inflation, and bureaucratic inefficiency as major obstacles.
- His suggestions include restoring core values like “customer first,” streamlining the HR system, and trimming redundant businesses.
Alibaba founder Jack Ma replied internally, acknowledging Yuan’s concerns and thanking him for the post.
Context: Jack Ma’s internal response is the latest in a series of public and private acknowledgments from Alibaba leadership about the company’s troubles. CEO Eddie Wu and Chairman Joe Tsai have recently pledged to treat Alibaba “like a startup again,” as the firm seeks to reposition itself amid rising competition and slowing growth in China’s internet sector.
- Alibaba’s internal reckoning comes after years of stumbles. At BEYOND Expo 2025, Alibaba Chairman Joe Tsai publicly admitted the tech giant had “setbacks.”
- In its latest fiscal quarter ending March 31, Alibaba reported revenue of RMB 236.5 billion ($32.6 billion), slightly below analyst expectations. Shares fell 7.6% on the earnings miss.
- As competition intensifies from rivals like Pinduoduo, Douyin, and JD.com, Alibaba is attempting a reset. Earlier in May, Alibaba CEO Eddie Wu urged employees to adopt a founder’s mindset as the company pivots toward AI.
- The e-commerce giant also bets big on AI. Alibaba Cloud is focusing on AI infrastructure and public cloud, while Taobao is revamping customer policies and expanding into on-demand retail.
- Though Jack Ma has largely stayed out of the public eye since 2020, he remains Alibaba’s largest shareholder and spiritual figure. In recent months, he has returned to campus and appeared at a high-profile business symposium with Chinese President Xi Jinping, signaling a cautious re-engagement.
Related
