Highlights: Daniel Zhang, 51, will be replaced by Joe Tsai, Alibaba's current vice president. Eddie Yongming Wu, another veteran of the pioneering e-commerce company in China, will take the position of CEO. Alibaba shares lost more than 20.1% on the Hong Kong Stock Exchange on Tuesday afternoon, June 5. This change of boss comes in the midst of restructuring: the brand is about to be divided into six separate entities each with their own board of directors. A strategy presented as a return to the start-up spirit of the beginning, when Alibaba was founded in Jack Ma's apartment in Hangzhou.

The game of musical chairs within the Alibaba group: one of the co-founders of the Chinese e-commerce giant will replace the CEO of other functions. A change...

China: Joe Tsai will replace Daniel Zhang at the head of the giant Alibaba

The game of musical chairs within the Alibaba group: one of the co-founders of the Chinese e-commerce giant will replace the CEO of other functions. A change that follows the restructuring of the group announced three months ago.

Alibaba booth, at an exhibition in Beijing on June 5, 2023. AP - Ng Han Guan

Text by: RFI Follow

Advertising

With our correspondent in Beijing, Stéphane Lagarde

Announced by email, the resignation of Daniel Zhang after eight years at the head of Alibaba surprised the group's 200,000 employees and the markets. Alibaba shares lost more than 20.1% on the Hong Kong Stock Exchange on Tuesday afternoon, June 5.

A change presented as natural by the current CEO, who will leave his position on September 10 to join the very promising "Cloud intelligence" branch of the company, responsible in particular for developing a competitor to ChatGPT.

Big bang

Daniel Zhang, 51, will be replaced by Joe Tsai, Alibaba's current vice president. As for Eddie Yongming Wu, another veteran of the pioneering e-commerce company in China, he will take the position of CEO in addition to the management of the Taobao and Tmall apps.

This change of boss comes in the midst of restructuring. A real big bang: the brand is about to be divided into six separate entities each with their own board of directors.

They will each have to face the challenges individually. A strategy presented as a return to the start-up spirit of the beginning, when Alibaba was founded in Jack Ma's apartment in Hangzhou, near Shanghai.

https://t.co/pU2FWMgKpJ

— Stéphane Lagarde (@StephaneLagarde) June 20, 2023

The founder and retiree of the group has just given his first lecture as a visiting professor at the University of Tokyo, where he now lives, far away, but still attentive to his business empire abused by the authorities in recent years.

Known for his outspokenness, the former mathematics teacher who became one of the richest men in China disappeared in the media at the end of 2020, after publicly criticizing Chinese regulators.

Alibaba was the first company to suffer the campaign to take over tech companies. Jack Ma had since reappeared, giving classes or giving advice.

Loss of speed

This change of CEO also comes at a time when the group is losing momentum and facing fierce competition. In e-commerce, but not only.

Last week, ByteDance announced plans to make Douyin a mega application (messaging, electronic payment, online shopping, on-demand service).

Chinese internet and artificial intelligence giants are preparing for a knife re-entry. According to the South China Morning owned by Alibaba and led by Joe Tsai, the cloud branch that Daniel Zhang joins is preparing to go public.

>> READ ALSO: China: reappearance of the discreet Jack Ma, millionaire founder of Alibaba

China: Joe Tsai will replace Daniel Zhang at the head of the giant Alibaba

China: Joe Tsai will replace Daniel Zhang at the head of the giant Alibaba

Big bang

Loss of speed

Trends 24h

Latest