E-commerce giant Alibaba Group has announced that Eddie Wu will take over as the company’s CEO, succeeding Daniel Zhang. This move will enable Zhang to focus on Alibaba’s cloud computing business. Zhang has been Alibaba’s chief executive since 2015 and took over as chairman from Jack Ma in 2019.
In March, Alibaba revealed plans for a significant restructuring into six business groups. The succession plan follows this major reorganization, aimed at bolstering the company after economic growth challenges in the domestic market and stricter regulations from Beijing that impacted Alibaba’s growth.
In an internal memo to Alibaba staff, Zhang stated, “The development of core technologies such as cloud computing, big data, and AI is of utmost strategic significance. Cloud Intelligence Group is now full speed ahead on its spin-off plans, so it is the right time for me to dedicate my full attention and time to the business.”
Additionally, Alibaba announced that Joe Tsai will take over as the group’s chairman, replacing Zhang. Tsai, currently Alibaba’s executive vice chairman and owner of the Brooklyn Nets, will assume the role. Zhang, on the other hand, will continue leading the Alibaba Cloud Intelligence Group as chairman and CEO. The transition will take effect on September 10.
Alibaba’s plans for its cloud computing business involve a complete spin-off, aiming to establish it as an independent publicly listed company within the next year. Zhang mentioned the need for clear separation between the board and management team as the Cloud Intelligence Group progresses toward becoming an independent public entity.
Besides the cloud business, Alibaba’s other five business groups include its local services arm focusing on food delivery and mapping (Taobao Tmall), logistics division (Cainiao Smart), global e-commerce businesses (AliExpress and Lazada), and the digital media and entertainment unit.
Eddie Wu, one of Alibaba’s co-founders and currently chairman of the Taobao and Tmall Group, will assume the position of CEO. Taobao Tmall will remain fully owned by Alibaba. However, the reorganization will allow each business group to secure external funding and go public. These changes reflect Alibaba’s ongoing efforts to adapt to market conditions and position itself for continued growth and success.
