Alibaba announced a significant leadership reshuffle on Tuesday, as CEO and Chairman Daniel Zhang plans to step down this year and be succeeded by veterans at the Chinese tech giant.
Eddie Yongming Wu will assume the role of CEO, while Joe Tsai will take over as chairman on Sept. 10.
These two executives are long-time Alibaba veterans and close confidants of Jack Ma, Alibaba’s billionaire founder.
But who exactly are they and what do their appointments signify for Alibaba’s future?
Eddie Wu, incoming CEO
Eddie Wu is one of Alibaba’s co-founders, initially serving as a technology director in 1999. His experience lies in the company’s core e-commerce business, monetization, and technology, making him a well-rounded candidate to oversee the entire group.
After Alibaba’s decision to split into six units, he was appointed as the chairman of the Taobao and Tmall Group. Previously, these two units were the two largest e-commerce services in China.
Wu has also served as the chief technology officer of key businesses including Taobao and Alipay, the mobile payments service run by Alibaba affiliate Ant Group. He played a crucial role in the monetization platform on Taobao and Tmall, as well as the development of the Taobao mobile app that propelled the company into the smartphone era.
“Eddie Wu’s appointment as CEO shouldn’t come as a huge surprise. He co-founded Alibaba and played a key role in the technology development and monetization of Taobao and Alipay,” said Jacob Cooke, CEO of WPIC, an e-commerce tech and marketing firm.
“His elevation to CEO of the group is a natural transition and signals the unswerving importance of e-commerce in the company’s roadmap,” Cooke added.
Joe Tsai, incoming chairman
Joe Tsai, another co-founder of Alibaba, previously served as the company’s chief financial officer until 2013 and currently holds the position of executive vice chairman. He is also the chairman of Alibaba’s logistics unit Cainiao, as well as a member of the Taobao and Tmall division.
Joe Tsai will assume the role of chairman at Alibaba after current chairman and CEO Daniel Zhang steps down.
Jp Yim | Getty Images Entertainment | Getty Images
In addition to his Alibaba activities, Tsai is also the owner of the Brooklyn Nets basketball team in the U.S. and is often seen as a more internationally-focused executive.
“The appointment of Tsai as chairman aligns perfectly with Alibaba’s outward-looking strategy, with investments in Lazada and plans to open a local version of Tmall in Europe,” said Jacob Cooke.
Lazada, owned by Alibaba, has been instrumental in the company’s international expansion in southeast Asia. Alibaba also recently announced plans to launch local versions of its Tmall e-commerce service in Europe.
Timing of changes
It has been a challenging couple of years for Alibaba, starting with the suspension of Ant Group’s IPO in November 2020 and followed by increased regulatory scrutiny and a significant antitrust fine. The company has faced slowing growth and increased competition from rivals like JD.com and Pinduoduo.
Tsai and Wu will be tasked with revitalizing growth at Alibaba amid a challenging macroeconomic environment.
“I don’t think the reshuffling says too much about Alibaba’s business focus, nor do I believe it will have a significant impact on the company’s performance,” said Xin Sun, senior lecturer in Chinese and East Asian business at King’s College London.
“After all, the most important factors affecting the company’s performance are structural, such as the breakup of its ecosystem, the increasingly complex regulatory environment, and intense competition from rivals. None of these have changed.”
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