HONG KONG—Alibaba Group Holding Ltd.’s chief govt, Daniel Zhang, is devolving energy to the heads of the company’s organization units to turn into more agile in tackling increasing issues and likely open the way for spinoffs, folks familiar with the matter said.

Mr. Zhang, also chairman of the world-wide-web big, is delegating more responsibility to presidents at just about every organization line—from site-centered solutions to cloud computing—who now function as “mini-CEOs,” the persons mentioned. The tactic is intended to velocity up choice making so every single division can greater fend off competition, revitalize flagging product sales and reshape its monolithic picture in the wake of Beijing’s regulatory crackdown on big platforms.