Alibaba Group Holding Ltd. has appointed a veteran executive the overseer of its entire online e-commerce operation, setting in motion a major overhaul of a vast but struggling business.

Jiang Fan, who currently runs the rapidly expanding overseas retail division, will take over a newly created department that groups all Alibaba’s online shopping assets from Taobao and Tmall in China to Lazada in Southeast Asia. Jiang, who was demoted just a few years ago in part because of an online scandal, effectively becomes the most powerful person in the company after Chief Executive Officer Eddie Wu and Chairman Joseph Tsai.

Jiang, who since 2023 has overseen a division that consistently outperformed other parts of the Alibaba empire, will take the helm of a business struggling to grow during a deep Chinese economic downturn.

The consolidation of businesses under his wing marks the latest in a series of restructurings undertaken by the once-dominant internet pioneer, which hasn’t consistently delivered since Beijing in 2020 launched a sweeping crackdown on Alibaba and its peers. At one point, the company even contemplated a breakup of its main businesses.

Its Chinese e-commerce operation eked out just 1% growth in the September quarter, as it battled rising rivals like PDD Holdings Inc. and ByteDance Ltd. The international division, which encompasses Lazada and the Temu-like AliExpress, expanded retail revenue 35%.

The new division will also fold in smaller services such as international procurement site Alibaba.com, Idle Fish and Turkey’s Trendyol, Alibaba said in a statement.

Jiang takes over a Chinese operation previously led by fellow Alibaba veteran Trudy Dai. Alibaba’s US shares stood largely unchanged in pre-market trading.

“The new business group will drive significant synergies across global supply chains and support merchant growth opportunities with expanded market access and success in China and beyond,” Alibaba said in a statement. “This decision reflects Alibaba’s unwavering commitment to investing in its core commerce business and enhancing the quality of operations to win in the highly competitive e-commerce sector.”

Jiang was a rising star at Alibaba before he was removed in 2020 from the company’s influential partnership, a select group of people who influence the board’s makeup. That demotion came after his wife took to social media to warn another woman not to “mess with” her husband.

The post ignited a frenzy of online speculation about an affair and questions about Alibaba’s business decisions and investments — a public relations debacle for the then high-flying firm.

He returned to the partnership in 2023, when he also took over the international division. That unit has since consistently outperformed other divisions including the much-touted cloud arm.