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November 4, 2021: -ByteDance founder Zhang Yiming has stepped down as chairman as the company is continuing to reorganize its business, a person with direct knowledge of the matter told CNBC. ByteDance owns TikTok, the popular short-video app.
Zhang announced his resignation as the CEO of ByteDance in May and said he would move that to a strategy role this year.
The move comes after a massive reorganization at ByteDance this week. Shou Zi Chew, joining ByteDance as CFO from smartphone maker Xiaomi in March, will step down from his position as finance chief to focus full time on his other job as CEO of TikTok.
The Beijing-headquartered firm has created six business units to focus on different areas, from gaming to enterprise software.
When Zhang announced his plan to step down as CEO in May, he said in a note to employees that he believed someone else could “better drive progress through areas such as improved daily management.”
“The truth is, I lack some of the skills that make an ideal manager,” he said at that time.
ByteDance was caught in the geopolitical crosshairs in the previous year after the administration of President Donald Trump dubbed the company a national security threat and tried to force it to sell its U.S. operations. That did not happen in the end.
ByteDance’s reorganization comes after several reshuffles at Chinese companies in which founders have stepped back from their day-to-day duties.
Last week, Su Hua, the co-founder of TikTok’s rival Kuaishou, stepped down as CEO but remained chairman. And in September, Richard Liu, the founder of e-commerce giant JD.com, came from day-to-day operations to focus on the company’s long-term strategy.
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