JD.com says founder Liu to step away from day-to-day operations (updated)

JD Health International

06/09/2021 04:47

(Adds background)
    By Josh Horwitz
    SHANGHAI, Sept 6 (Reuters) - China's JD.com  9618.HK  said
on Monday founder and chief executive Richard Liu will switch
his focus to the e-commerce giant's long-term strategy, creating
the new role of president to run the company's day-to-day
operations.
    The move comes as several other founders of China's tech
companies have gradually relinquished the top job, such as at
Alibaba and Bytedance, although Liu, 48, will retain his title
as chief executive and his board seat.
    The new role of president will be filled by Xu Lei,
currently CEO of JD's biggest division, who has taken on a more
prominent public role at the company in recent years.
    Liu, who started the company that would become JD.com in
1998, will also spend more time mentoring younger management and
contributing to the revitalisation of rural areas, JD said in a
statement.
    "Looking to the future, the correct long-term strategic
design, the growth and development of young talents, and the
healthy and coordinated development of various business units
will continue to be the driving force for JD, in doing the
hardest and most challenging, but right and most valuable things
for the industry," Liu said in the statement.
    Liu owns nearly 80% of JD's voting power, according to its
2020 annual report, and some investors have previously raised
concerns his tight control, coupled with the lack of an obvious
successor, had posed a management risk.
    His control of the company became a focus after he was
arrested in the U.S. city of Minneapolis in 2017 following a
rape allegation, which he denied. Liu was not charged https://www.reuters.com/article/us-jd-com-ceo-idUKKCN1OK278
 but the incident caused a storm on Chinese social media.
    Xin Lijun, who previously headed up JD Health  6618.HK ,
will take over from Xu as JD Retail's chief while Jin Enlin will
become JD Health's new CEO. 
    Following Xu's promotion, Liu will retain his board seat and
position as CEO of JD.com, a company spokesperson confirmed.
    In 2019, Alibaba Group Holding Ltd  9988.HK  co-founder Jack
Ma formally stepped down as chairman of the e-commerce giant,
handing over reigns to Daniel Zhang.
    In 2021, ByteDance founder Zhang Yiming announced he would
step down from his role as CEO, while Pinduoduo Inc  PDD.O 
founder stepped down as chairman following an earlier
resignation of his CEO title.
    Chinese authorities have also launched a wave of new
industry regulations and penalties since late 2020, many of
which have targeted the internet sector in particular.

 (Reporting by Brenda Goh and Josh Horwitz in Shanghai; Editing
by Ana Nicolaci da Costa and Richard Pullin)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))