Outgoing Alibaba CEO and Chairman Daniel Zhang despatched a memo to workers on Tuesday explaining his causes for stepping down.
Zhang will bow out in September, whereas firm veteran Eddie Wu will succeed him as CEO, and Joe Tsai will take over as chairman, Alibaba introduced Tuesday.
The transfer comes practically three months after Alibaba introduced plans to separate the corporate into six enterprise teams, every with the flexibility to lift exterior funding and go public.
Zhang will stay CEO of the cloud computing enterprise, because it pushes in direction of a spin-off and eventual public itemizing.
“Cloud Intelligence Group is now full velocity forward on its spin-off plans and we’re approaching a vital stage of the method, so it’s the proper time for me to dedicate my full consideration and time to the enterprise,” Zhang stated in a memo to workers obtained by CNBC.
“From a company governance perspective, we additionally want clear separation between the board and administration staff as Cloud Intelligence Group proceeds down the trail to changing into an impartial public firm. It will be inappropriate for me to proceed serving as Chairman and CEO of each firms on the identical time through the spin-off course of.”
Zhang stated the choice to step down was a part of his personal plan.
Zhang’s intentions to solely give attention to cloud now have been some years within the making. In an interview with CNBC in 2018, Zhang stated cloud computing would be the firm’s “primary enterprise” sooner or later, underscoring his bullishness relating to the know-how.
My fellow Aliren,
Since changing into CEO of Alibaba Group in Might 2015, it has turn out to be my customized to ship a number of letters to everybody yearly. As lots of you have got come to anticipate when receiving such a letter, it typically alerts a major organizational change. As we speak isn’t any exception. This time, nevertheless, the information I am sharing includes an essential private change.
I’m happy to report that our organizational transformation into the “1+6+N” mannequin has been progressing as deliberate since we made the announcement. Throughout our most up-to-date earnings announcement, we launched the board of administrators for every of the six main enterprise teams, and these entities are actually all absolutely operational. We additionally introduced plans for a sequence of great transactions, which embody Cloud Intelligence Group’s full spin-off and itemizing as an impartial firm, IPOs for Cainiao Good Logistics and Freshippo, and exterior capital elevating for AIDC. Alibaba may have a brand-new outlook for the longer term.
As everyone seems to be properly conscious, the event of core applied sciences corresponding to cloud computing, massive information and AI will result in an amazing transformation of our society and is of utmost strategic significance. Cloud Intelligence Group is now full velocity forward on its spin-off plans and we’re approaching a vital stage of the method, so it’s the proper time for me to dedicate my full consideration and time to the enterprise. From a company governance perspective, we additionally want clear separation between the board and administration staff as Cloud Intelligence Group proceeds down the trail to changing into an impartial public firm. It will be inappropriate for me to proceed serving as Chairman and CEO of each firms on the identical time through the spin-off course of. Subsequently, the Alibaba board of administrators has mentioned and accepted my plan to transition from the position of Chairman and CEO of Alibaba Group to focus solely on my position as Chairman and CEO of Cloud Intelligence Group, efficient September tenth 2023. In flip, the Alibaba board of administrators has appointed Joseph C. Tsai to succeed me as Chairman and Eddie Yongming Wu to succeed me as Chief Govt Officer. As co-founders and companions of the corporate, Joe and Eddie have made important contributions to the corporate’s improvement and possess a wealth of invaluable expertise. I’ve each confidence that their management will information Alibaba towards new heights.
This transformation signifies a brand new part and new journey, not just for the corporate but additionally for me personally. Time flies, and this yr marks my sixteenth yr at Alibaba Group. My appointment as CEO and Chairman of Alibaba Group was past my creativeness. With the ability to absolutely dedicate myself to the roles for so long as I’ve is really as a result of belief, help, encouragement, and endurance I’ve obtained from everybody. For this, I’m without end deeply grateful. Because of the historic alternatives that emerged by means of social progress and market improvement over the previous 16 years, I had the privilege of witnessing the fast progress of Alibaba and took part alongside everybody in so many achievements from inception to maturation that has impacted folks’s on a regular basis lives, enabled the digital transformation of companies, and made constructive contributions to society. Collectively we withstood the challenges caused by the pandemic and weathered the uncertainties of the macro setting over the previous three years. Via prosperity and adversity, we grew stronger, shared unforgettable experiences, and persevered by means of all of it collectively. I’m grateful for the friendships and bonds cast throughout this journey that’s extra worthwhile and significant to me than the rest.
Over the previous 24 years, we’ve initiated self-reinvention many instances. As we speak, we’re all standing collectively at a brand new start line, hoping to unlock new progress by means of self-transformation. I do know everybody will proceed to help Joe, Eddie, and the brand new senior administration staff. I hope everybody will discover the perfect path and platform for themselves. Your self-fulfilment will profit society and the corporate, however extra importantly, hopefuly will make it easier to uncover the right way to be the perfect model of your self. The staff at Cloud Intelligence Group and I are additionally standing on a model new stage, and we’ll leverage the facility of latest know-how in cloud computing, massive information, and synthetic intelligence to serve the digital transformation of enterprises of all sizes and industries and seize the huge potential caused by AI. I’m extremely keen and excited.
My buddies, the panorama could evolve, however the mountains stay and the rivers will proceed to circulation. Let’s begin a brand new chapter. After we meet once more, could all of us be carefree!
Daniel Zhang
Alibaba Group Chairman and CEO
Alibaba Cloud Intelligence Group Chairman and CEO
2023.6.20