The previous CEO of Alibaba has resigned as head of its cloud computing enterprise in a shock transfer because the Chinese language e-commerce empire wraps up a management reshuffle
ByZEN SOO AP expertise author
September 11, 2023, 2:07 AM
HONG KONG — The previous CEO of Alibaba, Daniel Zhang, resigned as head of its cloud computing unit Monday in a shock transfer because the Chinese language e-commerce empire wraps up a management reshuffle.
Alibaba mentioned it is going to make investments $1 billion in a expertise fund Zhang will set up to help the agency’s methods for future progress.
Zhang stepped down on the identical day he gave up his roles as Alibaba’s CEO and chairman.
In a submitting to the Hong Kong inventory alternate, Alibaba mentioned that Eddie Wu, its new CEO, may even head its cloud unit. Wu and Alibaba’s new chairman Joseph Tsai assumed their new roles by Monday, with Alibaba saying it has “accomplished its management transition.”
Alibaba expressed its “deepest appreciation” to Zhang for his contributions to the corporate over the previous 16 years.
Alibaba’s Hong Kong inventory worth was down 3.6% Monday following the announcement.
In an inside letter dated Sunday and seen by the AP, Tsai wrote that Zhang had “expressed his want to transition away from his position” as chief of the cloud enterprise, and the Alibaba board had “revered and accepted Daniel’s choice.”
“Daniel will proceed to contribute to Alibaba by channeling his experience in a different way,” Tsai wrote.
Alibaba has been restructuring itself into six enterprise items with the goal of ultimately spinning most of them off and itemizing them to maximise shareholder returns.
In Could, the corporate mentioned it aimed for its cloud unit to be listed throughout the subsequent 12 months. It reaffirmed that plan on Monday.
Zhang joined Alibaba in 2007 and is understood for creating the corporate’s annual Singles Day on-line procuring extravaganza. In 2015, he took over from co-founder Jack Ma as Alibaba’s CEO. In 2019 he succeeded Ma as chairman.