Daniel Zhang, the outgoing chief executive and chairman of Chinese tech giant Alibaba, has stepped down as head of the tech company’s cloud division, a position he held for just a few months.
The company announced in June that Mr. Zhang would hand over the chairman role this month to Joseph Tsai, an Alibaba co-founder, and that Eddie Yongming Wu, another founder, would become chief executive.
But Mr. Zhang is widely expected to continue to lead Alibaba’s cloud computing division, a position he assumed in March as part of a sweeping restructuring he announced for the company that month. News that Mr. Zhang would also step down from the company’s cloud division was previously reported by both Bloomberg and Reuters.
Mr. Zhang’s status at Alibaba became uncertain after the company’s announcement in June that he would be replaced by two key members of the tech giant’s old guard.
Will now be replaced by Mr. Wu the cloud division on a temporary basis. “Daniel has expressed his desire to transition from his role as chairman and CEO of Cloud Intelligence Group,” Mr. Tsai wrote in a note to staff members, according to to Reuters.
“Following careful consideration, the Alibaba board respects and accepts Daniel’s decision and appoints Eddie as acting chairman and CEO of Cloud Intelligence Group, effective immediately,” continued Mr. Tea.
Alibaba has long been synonymous with online shopping in China. But it has also expanded into many other businesses in recent years, including digital payments, delivery services, travel booking and entertainment.
In recent years, the company has also been a major target of the Chinese government as part of a broader effort to tighten its grip on internet Goliaths. Chinese officials fined Alibaba $2.8 billion in 2021, saying it hindered competition and harmed consumer interests.
Mr. Tsai, the new chairman, is known for his long relationship with Jack Ma, the Chinese billionaire founder of Alibaba and longtime face of the company.
The two men have known each other since 1999, the same year Mr. Tsai on Alibaba. Mr. Tsai, the principal owner of the Brooklyn Nets, played a major role in the company’s initial public offering in New York in 2014.
Mr. Zhang will continue to work for the company, according to on Bloomberg. He will manage a $1 billion technology investment fund that Alibaba will establish today.
