Alibaba Group Holding Ltd.’s stock fell more than 4% in Hong Kong on Monday after Daniel Zhang, the former group CEO who had been concentrating on cloud computing, quit just two months after taking up the role.
The abrupt departure of Zhang, who is also Alibaba’s chairman, has raised concerns about the company’s cloud business, which is still loss-making.
Alibaba Cloud is the second-biggest cloud computing provider in China after Tencent Holdings Ltd., but it has been facing increasing competition from rivals such as Huawei Technologies Co. and Baidu Inc.
Zhang’s resignation also comes at a time when Alibaba is facing regulatory scrutiny in China. The company was fined a record $2.8 billion by Chinese regulators last year for antitrust violations.
“I have decided to step down from my role as CEO of Alibaba Cloud to focus on my new role as chairman of Alibaba Group and to set up a technology fund,”. “I believe that this is the best time for me to make this transition.”Zhang said in the letter
Zhang’s departure is a blow to Alibaba Cloud, which he had been leading since 2015. He was credited with turning the business around and making it one of the most successful cloud computing providers in the world.
It is unclear who will replace Zhang as CEO of Alibaba Cloud. The company said it would make an announcement in due course.
The news of Zhang’s resignation sent Alibaba’s stock tumbling in Hong Kong. The stock closed down 4.4% at HK$86.85 ($11.08).
The sell-off reflects investor concerns about the future of Alibaba Cloud and the company’s overall business. Alibaba is facing a number of challenges, including regulatory scrutiny, slowing economic growth in China, and increasing competition from rivals.
Daniel Zhang Yong (All About in Short)
- 11 January 1972: Born on
- 1994: Graduates from the Shanghai University of Finance and Economics with a degree in finance.
- 1994-2007: Works as an accountant for PricewaterhouseCoopers.
- 2007: Joins Alibaba as its chief financial officer.
- 2008: Becomes the chief operating officer of Taobao.
- 2011: Becomes the president of Tmall.
- 2013: Becomes the chief operating officer of Alibaba Group.
- 2015: Becomes the CEO of Alibaba Group.
- 2019: Becomes the executive chairman of Alibaba Group.
- 10 Sep 2023: Resigns as Alibaba Cloud CEO
It remains to be seen how Alibaba will cope without Zhang’s leadership. However, the company has a strong track record of innovation and resilience. It is likely to find a way to overcome the challenges it faces and continue to grow and succeed.