REUTERS/Chance Chan
Jack Ma, founder of Alibaba Group, hugs Jonathan Lu, Alibaba during a celebration of the 10th anniversary of Taobao Marketplace, China's largest consumer-focused e-commerce website, in Hangzhou, May 10, 2013.
The shake-up comes as Alibaba is surging after beating earnings.
Lu became known as "the corporate alter-ego of [Alibaba founder Jack] Ma" because of his low-key style.
"We complement each other very well," Lu told Bloomberg in 2013. "He looks forward and outside of the box, I focus on the present."
The change will be effective Sunday.