Alibaba Group has announced that Daniel Zhang will step down from his role in the company’s cloud business, a move that comes just two months after Zhang revealed he would leave his positions as group CEO and chairman to focus on the cloud unit.
Zhang had been concurrently serving in three roles: heading the group, leading the cloud intelligence unit, and serving as CEO and chairman. The cloud unit is China’s largest cloud provider and is set to be spun off from Alibaba as part of the company’s restructuring.
Eddie Wu, who was scheduled to take over as Alibaba’s group CEO, will also assume responsibility for the cloud business after Zhang’s departure. Alibaba’s cloud business is a significant part of the company’s restructuring, with plans for it to go public within the next year.
Zhang’s decision to step down from the cloud unit was shared in an internal letter to staff. Alibaba praised Zhang for his contributions over the past 16 years and announced that he would be involved in a new technology fund funded by the company.
The restructuring of Alibaba involves breaking the company into six units, each with its own boards and CEOs. The cloud unit is estimated to be worth $41 billion to $60 billion, but it may face regulatory scrutiny due to the large amount of data it manages.
Daniel Zhang has played a pivotal role in Alibaba’s history, known for creating the company’s annual “Singles Day” shopping festival. He took over as CEO in 2015 and assumed the role of chairman in 2019, succeeding Alibaba co-founder Jack Ma. Zhang’s departure from his roles follows a period of increased regulatory scrutiny on Alibaba.
Zhang’s transition away from his role as chairman and CEO of the Cloud Intelligence Group aligns with Alibaba’s continued efforts to navigate the changing regulatory landscape and focus on the growth of its cloud business.
