In a move that has surprised markets, the chief executive officer (CEO) of Chinese e-commerce giant Alibaba Group (BABA) has stepped down.
Daniel Zhang, Alibaba’s current CEO, has resigned and will be replaced in the top job by Eddie Wu.
Alibaba said Zhang will remain with the company and is transitioning to focus on the company’s cloud intelligence business.
The leadership change comes after China’s largest e-commerce company said it will restructure into six separate business groups in the biggest reorganization of Alibaba’s history.
Alibaba is trying to boost its business amid slow economic growth in China and after government officials and regulators cracked down on the company over the past two years.
At one point, China’s government slapped Alibaba with a record fine of $2.8 billion U.S. for what officials called “anti-competitive practices.”
Alibaba’s stock has decreased 13% over the last 12 months to trade at $92.10 U.S. per share.
Tech Insider
