Yu Yongfu, the newly appointed CEO of Alibaba’s Local Life department after the company’s recent sexual harassment scandal, is gearing up for a major organizational reshuffle, Chinese media outlet LatePost reported on Wednesday.
Yu plans to reorganize the local life services sector of the company into ten business units including five consumer-facing business units, four enterprise-facing segments and one infrastructure service unit for logistic support.
The five consumer-facing business units include business centers dedicated to store-to-store and home-to-home needs, a marketing brand cooperation business center, in addition to local retail and local retail supermarkets. At present, the most significant business center is the home-to-home business service, since the other three unit leaders except the store-to-store business center need to report to the home-to-home business leader.
The four enterprise-facing segments include home and store teams, life services, a business efficiency product center and a business promotion center. A person familiar with Alibaba’s Local Life department told LatePost that the infrastructure service unit for logistic support is currently the focus of Alibaba’s Chairman and CEO Zhang Yong. This person also said that the unit may become independent in the future.
While adjusting the units, Yu Yongfu also proposed to establish an “L-shaped organizational structure”. Some people in the department believe that the structure means that all businesses are vertically integrated on a functional middle platform. Others think that it is about the development route of executives.
Affected by this summer’s work harassment news, Alibaba’s Local Life department has undergone three major organizational restructurings in just two months. In the early morning of August 9, Li Yonghe, President of the local life business group, resigned one month after taking over his post. Zhang Yong announced in July that the firm would integrate three of its major location-based businesses, namely AutoNavi, Local Life and Fliggy, into its life services section.