Alibaba CEO Quits Cloud Business Causing Shares to Decline

Alibaba, the prominent Chinese technology giant, has made a surprising announcement regarding its leadership changes. The outgoing CEO, Daniel Zhang, will not be continuing as the head of Alibaba’s cloud business, which caused a notable decline of 3.5 percent in Alibaba’s shares.

This decision marks a departure from the initial plan revealed in June, where it was announced that Zhang would step down as the CEO of the Alibaba Group to focus exclusively on leading the cloud intelligence unit. Now, Eddie Wu, originally scheduled to assume the role of group CEO and director in September, will temporarily hold the positions of both chairman and CEO of the cloud business.

Alibaba conveyed its gratitude to Mr. Zhang in a statement to the Hong Kong Stock Exchange. Zhang has played a significant role at Alibaba for 16 years, serving as CEO since 2015 and chairman since 2019, in addition to his leadership role in Alibaba Cloud Intelligence Group since 2022. The company also noted that Zhang had expressed his desire to step back from his cloud leadership role, a decision that was respected and accepted by Alibaba’s board.

In the letter signed by Alibaba co-founder Joseph Tsai, the company expressed its commitment to having Zhang continue to contribute to Alibaba in a different capacity. Zhang is notably recognized for his pivotal role in spearheading Alibaba’s immensely popular Singles’ Day shopping festival since its inception in 2009. He took over as Alibaba chairman in 2019, succeeding the company’s founder, Jack Ma.

Have you read?
Why a Lack of Interpersonal Skills May Be Stunting Your Business Growth.
Discover leadership from the DDI report.
4 Secrets to Driving Growth & Momentum in an Established Industry.
How leaders can develop an athletic mindset.
Have Founder cum CEOs of Family Owned-Family Controlled Businesses diagnosed Conflicts?

This report/news/ranking/statistics has been prepared only for general guidance on matters of interest and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, CEOWORLD magazine does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

Email Address*

Name