INVC NEWS
Beijing : Alibaba’s leadership transition reflects a strategic emphasis on cloud computing and business restructuring. Learn about the implications and future plans of this transformative move.
China’s tech giant Alibaba has made a major change in its top management, announcing on Tuesday that Chairman and CEO Daniel Zhang will leave his post soon. He will be replaced by Joseph Tsai, the current executive vice president, as the company’s next CEO.
Daniel Zhang confirmed this in a statement, saying that it is the right time for him to step down, as the firm seeks to implement a full spin-off of its advanced cloud computing unit.
Alibaba, based in Hangzhou, China, is one of China’s most prominent technology firms, with business operations spanning areas such as cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.
Big change in Alibaba’s top management
The company has said that following this executive transition, Zhang will continue to serve as president and CEO of Alibaba Cloud Intelligence Group. The firm has faced several unprecedented hurdles in recent years, as China imposed tighter restrictions on the domestic tech sector. Alibaba said in late March that it would soon split into six business groups.
What could be the reason for this decision
The divestment of Alibaba’s business came as a blow to Zhang. His tenure saw Alibaba unveil a grand vision of business divestitures after the e-commerce leader posted its third consecutive quarter of single-digit revenue growth, fueling concerns that Chinese consumer spending is continuing to decline and China’s economy is in danger.
