Alibaba’s Zhang to head cloud intelligence group
ALBAWABA – Chinese tech giant Alibaba announced Tuesday they will be appointing a new chairperson and Chief Executive Officer (CEO) as of September 10.
Alibaba has been struggling with years of slow growth caused by weak consumer spending and a crackdown by authorities, according to Agence France-Presse.
The company is preparing for extensive reorganization of its business operations, including cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.
Chairman and CEO Daniel Zhang will be replaced by Joseph Tsai as Chairman and Eddie Wu as CEO, an Alibaba statement said.
However, Zhang will continue to serve as chairman and CEO of Alibaba Cloud Intelligence Group, the statement confirmed.
Zhang said it was “the right time” for him to step down, as reported by AFP.
The incoming CEO Tsai said in a statement that Zhang had "demonstrated extraordinary leadership in navigating unprecedented uncertainties affecting our business over the past few years".
Alibaba has been suffocating under tighter restrictions by the government of China on the domestic tech sector, coupled with weak consumer spending. The company saw its third consecutive quarter of single-digit revenue growth earlier in 2023.
The company will be splitting into six business groups, which would give each group the ability to pursue independent financing and public listing plans, Zhang highlighted.
Each of the groups will be headed by its own CEO and board.
