Bezos resigns as CEO of Amazon this year, transition to CEO

Amazon.com Inc on Tuesday said founder Jeff Bezos would step down as CEO and become CEO, as the company reported for the first time its third consecutive record profit and quarterly sales of over $ 100 billion.

The transition, scheduled for the third quarter, will make current cloud computing CEO Andy Jassy Amazon’s next CEO.

Net sales increased to $ 125.56 billion as consumers turned to the world’s largest online retailer for holiday shopping, beating analysts’ estimates of $ 119.7 billion, according to IBES data from Refinitiv.

Bezos, who started the company 27 years ago as an online bookseller, said in a note to employees published on Amazon’s website: “As Exec chairman, I will stay involved in important Amazon initiatives but also have the time and energy I need. to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post and my other passions. “

He added: “I have never had more energy, and this is not about retiring.”

Amazon shares rose less than 1% in the aftermath.

Jassy joined Amazon in 1997 and holds an MBA from Harvard Business School, according to the company’s website. He founded Amazon Web Services (AWS) and grew it into a cloud platform used by millions, the company says.

Tom Johnson, Head of Transformation at Mindshare Worldwide, said Jassy’s marketing underscores the importance of web services for Amazon’s future.

“Jassy’s background in managing AWS shows how attentive these services are to Amazon’s business strategy. It will be interesting to see how it affects their strategy and balance that priority with a growing advertising business and trade,” he said.

Jassys AWS, traditionally a bright spot, was slightly below expectations. While the cloud computing division announced business in the quarter with ViacomCBS, the BMW Group and others, it had sales of $ 12.7 billion, which is less than the $ 12.8 billion that analysts had estimated.

Amazon said it did not announce a replacement for Jassy at this time.

Since the beginning of the US coronavirus outbreak, consumers have increasingly turned to Amazon for supplies of staples and medical supplies. Brick shops closed their doors; Amazon, the world’s largest online retailer, instead recruited over 400,000 more workers and posted record profits in a row.

Amazon Chief Financial Officer Brian Olsavsky told reporters at a conference call that the cost of the pandemic in the first quarter is expected to be $ 2 billion, down from $ 4 billion in the fourth quarter.

With its open warehouses, Amazon had another record weekend, beating estimates for online store sales, subscription sales, third-party service sales as stocks and other retail sales on its platform.

Revenue increased from moving Amazon’s Prime Day marketing event – usually in July – to October, extending the holiday shopping period.

(REUTERS)