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Alibaba Group’s video game arm, Lingxi Games, is set to undergo a significant leadership restructuring. An internal memo circulated among staff revealed that the current management team will step down and allow younger executives to take over.
Notably, since 2023, Alibaba has been promoting young talent born after 1985 and infusing their skills into its management team.
Alibaba Seeks To Avoid The Old Tradition
According to the tech giant, this approach will help foster a startup mindset and promote innovation to avoid getting stuck in outdated practices.
The latest move is part of a broader organizational restructuring at Alibaba, where the firm has adopted a holding company management model and divided its business into six major units.
According to the report, Zhan Zhonghui, the current head of Lingxi Games, announced the move in a company-wide email. Zhonghui said he, alongside two other executives, will step down from their roles by the end of March.
According to some sources, Zhuo Bingshu, an adept game producer in his mid-30s, will be taking over Zhonghui’s position.
Notably, Zhan Zhonghui, approximately 50 years old, founded Guangzhou Ejoy in 2011 and served as the CEO. Ejoy was later acquired by Alibaba in 2017 and rebranded to Lingxi Games.
Interestingly, Lingxi Games gained prominence for its mobile game Three Kingdom Tactics, which was released in 2019 and produced by Zhou.
The game lets players compete with one another to build empires. Three Kingdom Tactics rapidly grew in popularity and was really successful. It amassed more than $1 billion in revenue within the first two years of its launch, according to a report by SensorTower.
The upcoming transition signals a new era for Lingxi Games as the younger generation steers the gaming division’s future endeavors.
Other Top Firms Observing Similar Management Restructuring
Alibaba’s gaming arm is not the only division observing a leadership change; its domestic e-commerce, local services division, and cloud services have also witnessed leadership changes over the past year.
Other prominent companies have recently observed similar changes, too, to allow them to effectively adapt to evolving business sectors.
Some examples include Google, Microsoft, Domino Pizza, IBM, and Amazon. Google restructured its organization by creating Alphabet, a new holding company. This move aimed to enhance focus and efficiency by dividing the company into several entities.
Under the leadership of CEO Satya Nadella, Microsoft also underwent a restructuring phase in 2013. This initiative addressed internal challenges and sought to foster innovation across the organization. In January 2024, Amazon saw some leadership changes, with John Felton, its SVP of Worldwide Operations, switching to AWS, the firm’s tech solutions arm.
Felton’s role was later assumed by Udit Madan, who has worked with Amazon for over 15 years and led the company’s global delivery services. Similarly, Domino’s Pizza successfully implemented change management strategies to overcome challenges and drive growth.
Technological advancements and operational enhancements were crucial in driving its operations in the unstable pizza industry.
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