Chinese tech giant Alibaba has announced a surprising change in its top leadership as it seeks to rebound from a period of sluggish growth due to weak consumer spending and increased regulatory scrutiny. The move comes as Alibaba prepares for a comprehensive reorganization of its extensive business operations, including cloud computing, e-commerce, logistics, media and entertainment and artificial intelligence.
As part of the reshuffle, Joseph Tsai will assume the role of chairman, while Eddie Wu will become the new CEO, replacing Daniel Zhang, who currently holds both positions. The appointments will officially take effect on September 10.
In a statement, Zhang explained that it was the “right time” for him to step down as Alibaba plans to spin off its advanced cloud computing unit into a separate entity. Zhang has played a crucial role in the company’s success over the past decade, notably spearheading the highly popular Singles’ Day shopping festival since its inception in 2009.