Alibaba’s Stock Dips 3% as CEO Exits Cloud Division

by IS_Indust

Alibaba Group has announced a leadership reshuffle, with outgoing CEO Daniel Zhang stepping down as chairman and CEO of the company’s cloud business. This move follows an earlier announcement in June that Zhang would be leaving his roles as chairman and CEO of Alibaba Group to focus on the cloud intelligence unit.

Eddie Wu, originally set to take over as CEO and director of Alibaba Group in September, will now also serve as chairman and CEO of the cloud business on an interim basis. Joseph Tsai, another co-founder of Alibaba, will become chairman of Alibaba Group in September.

Zhang has been Alibaba Group CEO since 2015 and chairman since 2019. He took on the role of chairman and CEO of the Alibaba Cloud Intelligence Group in 2022. The company expressed its appreciation for Zhang’s contributions in a statement and noted that he would continue to contribute to Alibaba in a different capacity.

According to an internal letter seen by Reuters, Alibaba plans to invest $1 billion in a technology fund established by Zhang.

Alibaba has been undergoing significant restructuring, including the plan to spin off its cloud division as a separate publicly traded company. In March, the company split into six business groups, enabling each unit to raise external funding and potentially go public.

The reshuffling of leadership comes amid challenges for Alibaba, including slowing economic growth in China and increased regulatory scrutiny from the government, which has had an impact on the company’s share price.

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