LAGOS, Nigeria (VOICE OF NAIJA)-Chinese tech giant, Alibaba announced that it will replace its top executive as it attempts to rebound from years of slow development brought on by weak consumer spending and a crackdown by regulators.
The market leader is making the move as it gets ready to reorganize its vast commercial activities, which include cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.
Eddie Wu will take over as CEO and Joseph Tsai will become chairman, the company announced on Tuesday. Daniel Zhang will step down as chairman. On September 10, both positions will become operational.
As the company works to achieve a full spin-off of its advanced cloud computing section, Zhang said in a statement that it was “the right time” for him to step aside.
According to the firm, Zhang will continue to lead the Alibaba Cloud Intelligence Group as chairman and CEO following the management change.
Also, a statement from the incoming top boss Tsai, Zhang “has demonstrated extraordinary leadership in navigating the unprecedented uncertainties that have been affecting our business over the past few years.”
Beijing’s tougher regulations on the domestic tech industry and low consumer spending have both presented the company with fresh challenges in recent years. Earlier this year, it reported its third consecutive quarter of single-digit revenue growth.
Alibaba made the shocking news that it would split into six business groups at the end of March, marking one of the biggest changes to a major Chinese digital company to date.
The flexibility to seek independent financing and preparations for a public listing will be provided by the restructure, according to Zhang at the time.
Each unit will be run by its own CEO and board of directors under the new model.
In order to preserve competitiveness in the face of increased regulatory obstacles and increasing demands on the global economy, the corporation has stated that it seeks to attain a “more nimble” structure.
Jack Ma, who established Alibaba in 1999, has kept a quiet profile since late 2020, when Beijing shelved a proposed IPO by Alibaba affiliate Ant Group in response to a speech he gave criticizing Chinese officials.
Later, the IT giant was hit with a record fine of $2.75 billion (about Rs. 22,600 crore) for allegedly using unfair business practices.