Tech giant Alibaba names next CEO

CHINESE tech giant Alibaba said on Tuesday it will replace its top boss in a surprise move at the e-commerce titan as it looks to recover from years of slow growth caused by weak consumer spending and a crackdown by authorities.

The move comes as the market leader prepares to undergo a fundamental reorganization of its sprawling business operations which span cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.

REVAMP Joseph Tsai, executive vice chairman of Alibaba Group, speaks to journalists during Alibaba’s 11.11 Global Shopping Festival in Shanghai, China on Nov. 11, 2018. China’s Alibaba Group has announced a major management reshuffle aimed at spurring the e-commerce giant’s growth at a time when the Chinese economy is slowing despite an end to Covid-19 pandemic restrictions a half-year ago. AP PHOTO

Tuesday’s announcement will see Chairman and Chief Executive Officer (CEO) Daniel Zhang replaced by Joseph Tsai as chairman and Eddie Wu as CEO, the company said. Both appointments will take effect on September 10.

Zhang said in a statement it was “the right time” for him to step down as the firm looks to implement a full spin-off of its advanced cloud computing unit.

Following the executive transition, Zhang will continue to serve as chairman and CEO of Alibaba Cloud Intelligence Group, the company said.

Incoming top boss Tsai said in a statement that Zhang had “demonstrated extraordinary leadership in navigating unprecedented uncertainties affecting our business over the past few years.”

The firm has faced various new headwinds in recent years as Beijing imposed tighter restrictions on the domestic tech sector, while weak consumer spending saw it record its third consecutive quarter of single-digit revenue growth earlier this year.

In a shock announcement, Alibaba said in late March that it would split into six business groups — one of the most significant overhauls of a leading Chinese tech firm to date.

Zhang said at the time that the restructuring would give the individual business units the ability to pursue independent financing and public listing plans.

Under the new arrangement, each unit will be managed by its own CEO and board of directors.

The company has said it aims to achieve a “more nimble” structure in order to maintain competitiveness in the face of new regulatory challenges and mounting pressures on the global economy.

Alibaba was founded in 1999 by Jack Ma, who has kept a low profile since late 2020, when a speech he made attacking Chinese regulators was followed by Beijing pulling the plug on a planned initial public offering by Alibaba affiliate Ant Group.

A record fine of $2.75 billion was later imposed on the tech giant for alleged unfair business practices.

In January, Ant Group said Jack Ma no longer held controlling rights in the company a move analysts speculated might have helped pull Ant and Alibaba out of the regulatory doghouse.