Alibaba Group is going to divide its entire business into 6 parts.
Major Chinese tech firm Alibaba Group announced on Tuesday that it will split its business into six business groups.
According to the company, each of the six new units will now be managed by its own CEO and board of directors.
Day-to-day operations of all 6 individual business units will be handed over to new management.
Even after the business division of Alibaba Group, Daniel Zhang will continue in his position as the CEO of the company.
The company's President and CEO Daniel Zhang gave this information in a statement on 28 February.
Zhang said that the split will help in raising funds and taking forward the initial public offering plans.
This move by Alibaba could prove to be helpful in unlocking shareholder value and boosting market competitiveness.
Alibaba Group Holding Limited, also known as Alibaba is one of the most prominent tech giants in China.
Alibaba operates businesses in cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.