Alibaba has surprisingly announced the departure of former CEO Daniel Zhang, just two months after appointing him to head the company's new cloud computing branch. This move comes as part of Alibaba's significant restructuring efforts, which involve dividing the company into six separate entities for separate stock exchange listings. While no specific reason was given for Zhang's departure, the company expressed gratitude for his 16 years of contributions. Plans for a spin-off cloud computing firm will proceed under a new management team.
Joseph Tsai will assume the role of chairman, while Eddie Wu will take over as CEO, replacing Zhang.
The company's restructuring led to a nearly 3.5 percent drop in its shares on the first working day of the new organization. Despite its prominence in e-commerce and cloud computing, Alibaba's wide-ranging operations encompass logistics, media, entertainment, and AI. The company has faced increased scrutiny from Chinese regulators, notably in 2020 when its subsidiary Ant Group's highly anticipated IPO was halted, resulting in a substantial fine. In July, Ant Group faced another hefty fine for breaching banking regulations.
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