Later This Year, Jeff Bezos Will Step Down As Amazon CEO By CIOReviewIndia Team

Later This Year, Jeff Bezos Will Step Down As Amazon CEO

CIOReviewIndia Team | Wednesday, 03 February 2021, 04:04 IST

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On Tuesday, the Amazon.com Inc founder Jeff Bezos will step down as CEO and become executive chairman, reported by the company. Amazon also reported the third consecutive record profit and quarterly sales above $100 billion for the first time.

The transition is poised to take place in the third quarter of this year with the current cloud computing Chief Andy Jassy becoming the next chief executive officer of Amazon.

Amazon’s net sales increased to $125.56 billion as consumers turned to the world’s largest online retailer for solutions on holiday while the prediction was of $119.7 billion according to IBES data from Refinitiv.

Bezos started the company 27 years ago as an internet bookseller and posted a note for the employees on Amazon’s website, saying, “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.”

Bezos added, “I’ve never had more energy, and this isn’t about retiring.”

Amazon shares were up less than 1 percent in after-hours trading.

Jassy joined Amazon in 1997 and has MBA from Harvard Business School.

Jassy founded Amazon Web Services (AWS) and made it a cloud platform, which is being accessed by millions.

The chief transformation officer at Mindshare Worldwide, Tom Johnson said that Jassy’s promotion underscored the importance of web services to Amazon’s future.

Tom added, “Jassy’s background in steering AWS shows just how top of mind those services are to Amazon's business strategy. It’ll be interesting to see how that affects their strategy and balancing that priority with a growing ad business and the commerce behemoth.”

Jassy’s AWS is the main bright spot, which fell slightly short of expectations, while the cloud computing division announced deals in the quarter with ViacomCBS, the BMW Group and others.

Amazon is not announcing Jassy’s replacement at this hour.

When the pandemic started, consumers turned to Amazon for safe deliver of home staples and medical supplies. Brick and mortar shops closed their doors and Amazon the biggest online retailer included 400,000 more workers and posted regular profits.

The chief financial officer of Amazon, Brian Olsavsky said to the reporters that associated costs with the pandemic in the first quarter are expected to total $2 billion, which is a decrease from $4 billion in the fourth quarter.

While the warehouses are open, Amazon had another record holiday, beating estimates for online store sales, subscription sales, third-party service sales like warehousing and other sales to merchants on its platform.

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