The 437-Day Storm: Why Alibaba Purged DingTalk’s Founder to Save its AI Ambitions

Following a viral internal whistleblower report, Alibaba has removed DingTalk founder Chen Hang after a 437-day return characterized by toxic work culture and strategic stagnation. He is replaced by 32-year-old Chen Yusen, signaling a major shift toward AI-native leadership and a departure from the 'wolf culture' that previously defined the company.

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Key Takeaways

  • 1A viral 75,000-word internal post exposed a toxic culture of extreme overtime and 'upward management' at DingTalk.
  • 2Alibaba's Partnership Committee issued a rare public condemnation of the leadership, resulting in founder Chen Hang stepping down.
  • 3DingTalk faces significant commercial pressure, with a paying user conversion rate of less than 1% despite having 800 million total users.
  • 4The appointment of Chen Yusen, a millennial AI entrepreneur, marks a strategic move to prioritize creative AI development over traditional high-pressure management.
  • 5The shakeup highlights a broader industry shift where the '996' work culture is increasingly viewed as a liability for attracting top-tier AI talent.

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Strategic Analysis

The downfall of Chen Hang is a watershed moment for Chinese tech management. For a decade, the 'wolf culture' of extreme overtime was the engine of China's mobile internet boom. However, as the industry pivots to Generative AI, the limitations of this model have become clear: AI innovation requires creative exploration and high-level cognitive work, which cannot be sustained under assembly-line pressure. Alibaba’s decision to sacrifice a founding figure like Chen in response to an employee’s critique shows that the group is prioritizing cultural health and talent retention over its traditional hierarchical rigidity. By appointing a 32-year-old AI-native leader, Alibaba is betting that 'smart work'—driven by AI Agents and flexible structures—is the only way to beat competitors like ByteDance and reclaim its status as a technology pioneer.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

A 75,000-word internal manifesto has shattered the facade of corporate harmony at DingTalk, Alibaba’s enterprise collaboration giant. The document, titled 'Within DingTalk,' authored by product manager Yousu, detailed a toxic environment of extreme '9106' work schedules—9 a.m. to 10 p.m., six days a week—and 'upward management' that prioritized pleasing superiors over actual product utility. This grassroots rebellion led to an unprecedented move: the Alibaba Partnership Committee publicly rebuked the management style, leading to the abrupt departure of DingTalk’s legendary founder, Chen Hang.

Chen Hang, known by his alias 'Wuzhao,' had returned to lead the company just 437 days prior, tasked with steering DingTalk into the generative AI era. His management philosophy, forged in the early 'war' days against WeChat, relied on a high-pressure 'madhouse' environment. However, this strategy backfired in an era where AI development demands creative headspace rather than rote labor. The leaked details of 'Wangshu Action'—where employees were forbidden from leaving until their competitors at ByteDance’s Feishu turned off their lights—painted a picture of a leadership disconnected from modern talent needs.

Despite boasting a staggering 800 million users and 26 million organizations, DingTalk is facing a monetization crisis. Its conversion rate to paying customers remains below 1%, even as its rival Feishu gains ground with high-density, high-value corporate accounts. Chen’s vision was to transform DingTalk into an 'Agent OS' for the AI era, but the internal friction caused by his rigid, top-down command structure meant that strategic long-term projects were frequently abandoned in favor of 'daily builds' to satisfy executive whims.

In a clear signal of a generational shift, Alibaba has appointed 32-year-old Chen Yusen as the new CEO. A cybersecurity prodigy and AI-native entrepreneur, Chen represents a departure from the 'wolf culture' of the mobile internet era. His appointment suggests that Alibaba leadership recognizes that the next stage of tech dominance will be won by fostering innovation and attracting elite 'AI brains' who refuse to be treated like assembly-line workers. The transition marks the end of an era for the old guard and a desperate pivot toward a more flexible, technology-first organizational model.

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