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In an unexpected turn of events, Daniel Zhang, the outgoing CEO and chair of Alibaba Group, announced his resignation as head of the company's cloud computing division. Zhang's decision to resign comes just months after he was appointed to the position in March as part of a more significant restructuring effort at the Chinese tech behemoth.
Alibaba previously revealed its leadership transition plans in June, stating that Joseph Tsai, a co-founder of the company, would become chairman and Eddie Yongming Wu, another founder, would become CEO. However, it was widely expected that Zhang would continue to lead Alibaba's critical cloud division.
Eddie Wu will now assume interim leadership of the cloud division. Joseph Tsai explained in a memo to employees that Daniel Zhang expressed his desire to step down as chairman and CEO of the Cloud Intelligence Group. Zhang's decision was respected and accepted by the Alibaba board, which immediately appointed Eddie Wu as acting chairman and CEO of the Cloud Intelligence Group.
Alibaba, once synonymous with online shopping in China, has recently expanded into digital payments, delivery services, travel booking, and entertainment. This expansion drew increased scrutiny from Chinese authorities, resulting in a $2.8 billion fine imposed on the company in 2021 for alleged anti-competitive behavior.
The newly appointed chairman, Joseph Tsai, has long had ties to Alibaba co-founder and iconic figure Jack Ma. Tsai was instrumental in the company's initial public offering in New York in 2014, and he also owns the Brooklyn Nets.
Despite stepping down from his positions of leadership, Daniel Zhang will continue to contribute to Alibaba by overseeing the company's $1 billion technology investment fund. As it navigates these changes, Alibaba remains a key player in China's ever-changing technology landscape.
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