Amazon.com Inc. has announced that its founder and CEO, Jeff Bezos will step down from his post later this year, transitioning to Executive Chairman of the world’s largest online retailer.
In a statement, the company said Mr Bezos will be replaced in the fall of 2021 by Andy Jassy, who currently runs Amazon’s cloud business.
The Amazon founder added in a blog post to employees that he is planning to focus on new products and early initiatives being developed at Amazon. Mr Bezos said he would have more time for side projects, including his space exploration company Blue Origin, his philanthropic initiatives and overseeing The Washington Post, which he owns.
“I’ve never had more energy, and this isn’t about retiring.
“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.”
Mr Bezos founded Amazon as an online bookstore 27 years ago and turned it into a behemoth that sells just about everything.
In the process, he became the world’s richest man until Tesla CEO, Elon Musk usurped him early this year. Forbes estimates his current net worth at over $196.2bn.
Mr Bezos is one of the last founders of a big tech company to still be CEO. The founders of Google, Oracle and Microsoft have all stepped down from the CEO positions of the companies they created. Facebook is still led by co-founder Mark Zuckerberg.
The Amazon founder posited in his blog post that it is the “optimal time for this transition” since right now he sees “Amazon at its most inventive ever “
“Amazon is what it is because of invention… When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention.”
During the pandemic, Amazon was one of the few retailers to benefit as lockdowns and restrictions ensured people stayed clear of malls and shopped from their phones. Along with announcing that Mr Bezos would step down, the company reported making a record profit in the last three months of 2020, and its quarterly revenue shot past $100 billion for the first time.
Jassy, Bezos’ replacement, is a longtime Amazon executive who has worked at the company since 1997. The cloud-computing business he runs powers video-streaming site Netflix and many other companies, and it has become Amazon’s most profitable business.
“He’s deeply steeped in technology and a very seasoned executive in his own right,” Ed Anderson, an analyst from global research and advisory firm, Gartner, told reporters.
But he will also face many challenges. As Amazon has grown, so has scrutiny. Amazon and other tech giants have enjoyed ‘light-touch’ regulation in Washington for decades, but calls for greater regulation are growing in and outside the USA. A report by the US House Judiciary Committee in October called for possibly breaking up Amazon and others, making it harder for them to acquire companies and imposing new rules to safeguard competition.
“Amazon’s size makes some industries uncomfortable, some governments uncomfortable, and Andy Jassy will have to deal with the consequences,” Anderson said. “That will be some of the new era of his leadership.”
