Alibaba Announces Leadership Reshuffle as Daniel Zhang Steps Down as CEO and Chairman
In a surprising move, Alibaba Group announced in June that Daniel Zhang, the current chairman and CEO, would be stepping down from his positions on September 10th. Zhang, who has been with the company for 16 years, will be focusing his efforts on the cloud intelligence business.
Alibaba co-founder, Wu, will be taking over as the new CEO and director, while another co-founder, Joseph Tsai, will assume the role of chairman. This leadership reshuffle comes as Alibaba plans to expand and strengthen its position in the cloud industry.
Zhang has been instrumental in Alibaba’s growth and success over the years. He became CEO in 2015 and took on the additional role of chairman in 2019. Under his leadership, Alibaba has become one of the world’s largest e-commerce companies.
“The board of our Company expresses its deepest appreciation to Mr. Zhang for his contributions to Alibaba Group,” the company said in a statement. It is clear that Zhang’s departure from the CEO and chairman positions is a significant loss for Alibaba.
However, the company is determined to continue its growth and innovation. Zhang will still be involved with Alibaba, albeit in a different capacity. According to an internal letter seen by Reuters, Zhang will be establishing a technology fund in which Alibaba will invest $1 billion. This move will allow Zhang to channel his expertise differently while still contributing to the company.
Alibaba also announced its intention to spin off the Alibaba Cloud Intelligence Group under a separate management team, subject to restructuring plans and relevant approvals. This move is part of Alibaba’s strategy to expand and strengthen its presence in the cloud industry.
In May, the company revealed plans to spin off its cloud division as a separate, publicly traded company. This decision aligns with Alibaba’s efforts to raise outside funding and allow each unit to go public.
The leadership reshuffle and restructuring plans come at a time when Alibaba is facing challenges in the form of slowing economic growth in China and stricter regulations from the Beijing government. These factors have resulted in a decline in Alibaba’s share price.
Nevertheless, Alibaba remains committed to its vision and is determined to overcome the obstacles ahead. With new leadership and strategic plans in place, the company aims to continue its growth and innovation in the cloud intelligence business and beyond.