Jack Ma will step down from Alibaba next year

Billionaire tech tycoon Jack Ma will step down as Alibaba’s executive chairman next year, the Chinese e-commerce company announced Monday.

“No company can rely solely on its founders,” Ma said in a letter to customers, employees and shareholders. “Because of physical limits on one’s ability and energy, no one can shoulder the responsibilities of chairman and CEO forever.”

A former English teacher, Ma started Alibaba (BABA) nearly two decades ago and built it into a $ 420 billion business. He will be succeeded by current CEO Daniel Zhang.

With a net worth of around $ 40 billion, Ma is one of the richest people in China. He maintains a high profile, speaking at conferences around the globe and rubbing shoulders with world leaders.

Ma, who will remain on the company’s board of directors until 2020, said he has spent the last 10 years preparing for this succession plan, working to identify and develop the right talent inside Alibaba.

“Teachers always want their students to exceed them, so the responsible thing … for me and the company to do is to let younger, more talented people take over in leadership roles,” he said.

Zhang joined Alibaba in 2007 and held a range of senior management roles before taking over as CEO in 2015.

The announcement comes at an uncertain time for Chinese tech companies. The stocks of Alibaba and other top firms have been hit by concerns about the health of China’s economy and Beijing’s increased scrutiny of the sector.

Alibaba started out in 1999 as an online marketplace to connect Chinese businesses with one another. It has since expanded dramatically to become China’s biggest tech company, helping merchants sell everything from luxury goods to fresh groceries to the country’s growing number of online shoppers.

To handle the high volume of transactions, Ma set up Alipay, an online payments platform that allowed customers to pay for goods using a digital wallet. Alipay, now part of Alibaba-affiliate Ant Financial, is China’s most popular digital-payment service.

Alibaba is also an aggressive tech investor, pouring money into video streaming, online food delivery, dockless bike-sharing and ride-hailing start-ups in China and beyond.

Ma, who turned 54 on Monday, said he wants to return to education, adding that he is still young and has “lots of dreams to pursue.”