China\u2019s largest e-commerce company Alibaba Group has reportedly announced that Eddie Wu will succeed Daniel Zhang as the company\u2019s chief executive officer (CEO). According to a report by CNBC, this move will help Zhang to freely focus on the company\u2019s cloud computing business. Zhang has been Alibaba\u2019s chief executive since 2015. He took over from Jack Ma as the company\u2019s chairman in 2019.
In March, the company announced its decision to restructure into six business groups. The succession plan comes after the most significant reorganisation in Alibaba\u2019s history. This change aims to boost the company after the economic growth in its home market and tougher Beijing regulations that affected Alibaba\u2019s growth.
Read Zhang\u2019s internal memo to Alibaba staff<\/span>
\u201cAs everyone is well aware, the development of core technologies such as cloud computing, big data and AI will lead to a tremendous transformation of our society and is of utmost strategic significance. Cloud Intelligence Group is now full speed ahead on its spin-off plans and we are approaching a crucial stage of the process, so it is the right time for me to dedicate my full attention and time to the business,\u201d said Zheng in an internal memo sent to Alibaba staff.
Alibaba has also announced that Joe Tsai will replace Zhang as the group\u2019s chairman. Tsai, who currently acts as Alibaba\u2019s executive vice chairman is also the owner of Brooklyn Nets. Meanwhile, Zhang will continue to lead the Alibaba Cloud Intelligence Group as chairman and chief executive. The company said that the change will take effect on September 10.
Alibaba\u2019s plans for its cloud computing business<\/span>
Last month, the company announced its plans to \u201ccomplete a full spin-off\u201d of its cloud computing business. Alibaba is planning to make this division an independent publicly listed company within the next year.
\u201cFrom a corporate governance perspective, we also need clear separation between the board and management team as Cloud Intelligence Group proceeds down the path to becoming an independent public company,\u201d Zhang noted in the internal memo.<\/p>\nApart from the cloud business, the other five business groups of the company include — its local services arm that focuses 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.
Zhang\u2019s successor Wu is one of Alibaba\u2019s co-founders. Currently, Wu is the chairman of the Taobao and Tmall Group. Taobao Tmall will remain wholly owned by Alibaba. However, the reorganisation will allow each business group to raise outside funding and go public.<\/p>\n<\/div>\n