Amazon, on Tuesday, has announced that its founder and current CEO Jeff Bezos will transition to the role of Executive Chair in the third quarter of 2021. Andy Jassy – the current CEO of Amazon Web Services – will take up the role of CEO that time.
“If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition,” says Bezos.
The next move
In a letter that Bezos sent to his employees at Amazon – which has been published as a blog post – he mentions that he will transition to Executive Chair of the Amazon Board. In his new role, he intends to “focus my energies and attention on new products and early initiatives.”
“As much as I still tap dance into the office, I’m excited about this transition. Millions of customers depend on us for our services, and more than a million employees depend on us for their livelihoods. Being the CEO of Amazon is a deep responsibility, and it’s consuming. When you have a responsibility like that, it’s hard to put attention on anything else,” he says.
He further adds, “As Exec Chair I will stay engaged 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. I’ve never had more energy, and this isn’t about retiring. I’m super passionate about the impact I think these organisations can have.”
All About Andy
Andrew R. Jassy is the current CEO of Amazon Web Services (AWS) – a subsidiary of Amazon providing cloud computing services. He has an AB from Harvard University and completed his MBA from Harvard Business School in 1997. He joined Amazon right after – “I took my last final exam at HBS, the first Friday of May in 1997, and I started Amazon next Monday,” Jassy said in a Harvard Business School podcast in September. “No, I didn’t know what my job was going to be, or what my title was going to be.”
“Having led AWS since its inception, he’s managed an inventive and nimble team that has delivered more than 90 cloud infrastructure and application services that are used by millions of startup, enterprise, and government customers around the world. Jassy joined Amazon in 1997. Prior to founding AWS, he held various leadership roles across the company,” according to the company.
As per the company’s latest financial statement, AWS reported net sales of $12.74B during the fourth quarter of 2020, up from $9.95B in Q4 2019. It’s operating income rose from $2.59 in Q4 2019 to $3.56B in Q4 2020.
Financial results
Amazon reported net sales of $386.1B in 2020, compared with $280.5B in 2019 – a 38 per cent increase. Talking about its profits, the company recorded “net income increased to $21.3B, or $41.83 per diluted share, compared with net income of $11.6B, or $23.01 per diluted share, in 2019.”
Amazon also witnessed impressive growth in Q4 2020. Its net sales blew past the symbolic $100B mark for the first time. It recorded net sales of $125.6B in the fourth quarter, compared with $87.4B in the fourth quarter of 2019 – a 44 per cent increase.
Reactions
This move, which was announced alongside the ecommerce giant’s financial results, has taken the world by surprise.
This is how some of the tech leaders of the world reacted to this news:
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