Richard Liu: JD.com’s Organization Is Bloated and Inefficient, It Must Change

After Jack Ma shouted “Alibaba will change,” Richard Liu also spoke up. On the evening of December 9th (at Beijing time), Richard Liu, the founder and chairman of JD.com, replied to employee comments on the company’s internal network, stating that JD.com must change or there will be no way out. He believed that they would definitely overcome this downturn as every individual and company goes through peaks and valleys before achieving greatness. “The many problems that have arisen are undoubtedly due to my poor management. I feel extremely responsible for it. However, in any case, I will not lie down flat, and I hope my brothers won’t either.” Richard Liu said, “Currently, our organization is bloated and inefficient; it does take time to make changes.” Richard Liu also criticized on the internal network that many people talk about innovation every day but only copy and follow others instead.

Previously, a JD.com operator had published a lengthy article on the internal network, discussing some of the current issues within the company. These mainly include: complex promotional mechanisms; the need for advance planning and intensity control during major platform promotions; providing more support to pop merchants in the platform ecosystem; ensuring that everyone executes the low-price mindset thoroughly. It was precisely this article that attracted Richard Liu’s personal response.

On November 29th, as Pinduoduo‘s market value nearly surpassed Alibaba, the founder of Alibaba, Jack Ma, responded on the company’s intranet using the identity of “Partner Jack Ma,” saying: “I hope everyone can provide constructive opinions and suggestions, especially innovative ideas. I believe that all Alibaba employees are watching and listening today. I firmly believe that Alibaba will change and improve.”

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