The Chinese technology group Alibaba announced this Tuesday (20) the replacement of its CEO, Daniel Zhang, as of September, at a time of company restructuring.
Alibaba, founded by charismatic entrepreneur Jack Ma and a pioneer of e-commerce in China, has long been an example of success in the country.
However, in recent years the group has faced unprecedented difficulties due to the government’s increasing control over the technology sector.
After several months of turmoil, the conglomerate announced in March a split into six business groups, in one of the biggest reforms of a Chinese technology company.
With the restructuring process, Daniel Zhang announced in a statement that it is “the right time” to step away from the company. He will step down as chairman and CEO, as well as chairman of the board of directors.
Zhang will be replaced in the latter role by Joseph C. Tsai, the current executive vice president of the Alibaba group.
Eddie Yongming Wu, who runs the group’s main e-commerce apps (Taobao and Tmall), will be the new chairman and CEO.
The changes will take place on September 10, according to Alibaba.
Zhang will remain as chairman and CEO of Alibaba Cloud Intelligence Group, the company said.
The executive, 51, was responsible for ensuring the transition at the Alibaba conglomerate following the departure in 2019 of its founder Jack Ma.
In addition to e-commerce, the company based in Hangzhou (east) has a wide range of activities, which include cloud computing, logistics, media and entertainment, as well as artificial intelligence.
Alibaba was the first company in the technology sector to face the difficulties imposed by the Chinese authorities.
At the end of 2020, the government prevented, with just 48 hours’ notice, the huge entry into the Hong Kong Stock Exchange (of almost US$ 34 billion, R$ 176.6 billion) of the Ant Group, the finance and payments unit of the Alibaba.
The conglomerate was also the subject of an investigation for harming competition.
The problems considerably affected the conglomerate’s profitability in 2022.