Chinese technology group Alibaba announced on Tuesday (20) that its CEO, Daniel Zhang, will be replaced from September, at a time when the company is restructuring. Founded by charismatic entrepreneur Jack Ma and e-commerce pioneer in China, Alibaba has long been considered a success story in the country.

However, the group has faced unprecedented challenges in recent years due to increased government control over the technology sector. In response to the unrest, the conglomerate announced in March that it would split into six business groups, one of the biggest reforms ever undertaken by a Chinese tech company.

In a statement, Daniel Zhang said now is “the right time” to leave the company. He will leave the positions of chairman and chief executive officer, as well as chairman of the board of directors. Zhang’s replacement will take place on September 10.

Joseph S. Tsai, currently executive vice president of the Alibaba group, will take over as chairman of the board. Tsai is one of the top executives of the company and has a long history with Alibaba, being one of the co-founders along with Jack Ma.

The new CEO faces big challenges

Eddie Yongming Wu, who is responsible for coordinating Alibaba’s main e-commerce applications such as Taobao and Tmall, will become the group’s new president and CEO. Wu will be tasked with leading the company in addressing the regulatory and competitive challenges Alibaba currently faces.

The changes announced by Alibaba reflect the company’s search for a new strategic direction and a response to increasing regulatory pressure from the Chinese government. The restructuring of the group is aimed at strengthening its position in the market and adapting to changes in the country’s technological scenario.

The departure of Daniel Zhang and the appointment of Joseph S. Tsai and Eddie Yongming Wu mark a new chapter in Alibaba’s history. It remains to be seen how these changes will affect the company and its future trajectory in the Chinese tech and e-commerce sector.

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Source: Alibaba

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