Alibaba Group’s former CEO, Daniel Zhang, decided to quit his post just a few months after he agreed to control the cloud division. Alibaba has been facing a variety of problems in the last few months, and this development just added another layer of uncertainty as it is preparing for a complicated breakup. The news came through an internal memo from Alibaba.
According to Yahoo Finance,
“The executive assumed that post — regarded as pivotal within the organization — after ceding his dual roles of chief executive officer and chairman to Eddie Wu and Joseph Tsai, respectively. Wu and Tsai, close confidantes of Alibaba co-founder Jack Ma, formally took up their positions on Sunday.”
Due to this, Alibaba’s shares fell as much as 3.5%, which was the biggest fall of the company in three weeks. Investors are also concerned about the ongoing restructuring of the company in its cloud business, which is its biggest one after eCommerce.
Zhang is getting replaced by Tasi and Wu as the company is going through a complicated overhaul. This overhaul will break the internet leader of China into several smaller companies ranging from online shopping, cloud services, logistics, and more.
The pair now has the responsibility to make a turnaround with the $230 billion corporation (Alibaba). Alibaba actually struggled to stand up strong since 2021 after the Government’s regulatory assault against internet companies.
Zhang’s eight-year tenure with Alibaba saw the company reaching new heights and venturing into new arenas. One of the biggest examples was Alibaba starting its own physical retail store, as it grew to be Alibaba’s one of the fastest growing businesses.