At a time when the Chinese economy is slowing down, Alibaba Group of China has announced a significant management overhaul with the goal of boosting the expansion of the e-commerce giant. This comes despite the fact that COVID-19 pandemic limitations were lifted around half a year ago.
According to a statement released by the firm on Tuesday, Eddie Wu, the company’s current chairman of its e-commerce segment, will follow Daniel Zhang as CEO.
The cloud computing division of Alibaba, which has received approval to be spun off and is anticipated to be listed for trade within the next year, will be led by Zhang, who will serve as both CEO and chairman of the division.
The alterations will become effective on September 10th.
Joseph Tsai, who is now serving as Alibaba’s executive vice chairman, is going to take Zhang’s place as chairman of the Alibaba Group. Tsai, a Canadian citizen who was born in Taiwan, is the owner of the NBA basketball franchise Brooklyn Nets. He was also instrumental in the establishment of Alibaba in the late 1990s.
In 2015, Zhang was appointed chief executive officer of Alibaba Group, and in 2019, he replaced Jack Ma as chairman of Alibaba.
“Given the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off, this is the right time for me to make a transition,” Zhang said in a statement. “This is the right time for me to make a transition.”
“During the upcoming months, I am looking forward to working closely with Joe and Eddie in order to ensure a smooth transition.”
Alibaba made the announcement in March that it intended to reorganize itself into six distinct business divisions, with the intention of allowing all of its businesses, with the exception of its main e-commerce operation, to seek financing from outside sources and to go public.