Alibaba Group Names Eddie Wu CEO Amidst Restructuring and Competition
Alibaba Group is restructuring its management in response to intense competition and strategic shifts. The reshuffle, aimed at driving efficient alignment and significant investment, comes amidst a challenging period for the company's core commerce businesses.
Alibaba Group's chairman, Joe Tsai, has called for a new strategy and change in organizational principles. The company has appointed Eddie Wu as the new CEO, replacing Daniel Zhang. Wu, a co-founder of Alibaba, will oversee both the group and the e-commerce unit Taobao Tmall Commerce Group, following the stepping down of Trudy Dai.
The reshuffle follows a reversal in Alibaba's plan to fully spin off its cloud unit last month, which led to a drop in shares. The cloud business, currently struggling with market share losses and recent outages, is expected to receive sustained investment under Wu's leadership. The appointment is also a response to pressure from domestic rival Pinduoduo, which has surpassed Alibaba's market capitalization.
Alibaba Group's management reshuffle, with Eddie Wu taking over as CEO, signals a renewed focus on its core commerce businesses and cloud computing. The company aims to drive efficient strategic alignment and significant investment to tackle intense competition and recent challenges.
