Billionaire Jeff Bezos steps down as Amazon CEO, says ‘it isn’t about retiring’

Amazon.com Inc on Tuesday mentioned founder Jeff Bezos would step down as CEO and change into government chairman, as the corporate reported its third consecutive report revenue and quarterly gross sales above $100 billion for the primary time.
The transition, slated for the third quarter, will make present cloud computing chief Andy Jassy Amazon’s subsequent chief government officer.

Internet gross sales rose to $125.56 billion as shoppers turned to the world’s largest on-line retailer for vacation purchasing, beating analyst estimates of $119.7 billion, in accordance with IBES knowledge from Refinitiv.

Bezos, who began the corporate 27 years in the past as an web bookseller, mentioned in a be aware to staff posted on Amazon’s web site, “As Exec Chair I’ll keep engaged in necessary Amazon initiatives but additionally have the time and power I must concentrate on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Put up, and my different passions.”

He added, “I’ve by no means had extra power, and this isn’t about retiring.”

Amazon shares had been up lower than 1 per cent in after-hours buying and selling.

Jassy joined Amazon in 1997 and has a MBA from Harvard Enterprise College, in accordance with the corporate’s web site.

He based Amazon Internet Providers (AWS) and grew it to a cloud platform utilized by hundreds of thousands, the corporate mentioned.

Tom Johnson, chief transformation officer at Mindshare Worldwide, mentioned Jassy’s promotion underscored the significance of internet providers to Amazon’s future.

“Jassy’s background in steering AWS exhibits simply how prime of thoughts these providers are to Amazon’s enterprise technique. It’s going to be fascinating to see how that impacts their technique and balancing that precedence with a rising advert enterprise and the commerce behemoth,” he mentioned.

Jassy’s AWS, historically a vibrant spot, fell barely wanting expectations. Whereas the cloud computing division introduced offers within the quarter with ViacomCBS, the BMW Group and others, it posted income of $12.7 billion, wanting the $12.8 billion analysts had estimated.

Amazon mentioned it was not saying a substitute for Jassy at the moment.

Because the begin of the US coronavirus outbreak, shoppers have turned more and more to Amazon for supply of dwelling staples and medical provides. Brick-and-mortar retailers closed their doorways; Amazon, the world’s largest on-line retailer, as a substitute recruited over 400,000 extra employees and posted consecutive report earnings.

Amazon Chief Monetary Officer Brian Olsavsky advised reporters on a convention name that prices related to the pandemic within the first quarter are anticipated to complete $2 billion, down from $4 billion within the fourth quarter.

With its warehouses open, Amazon had one other report vacation, beating estimates for on-line retailer gross sales, subscription gross sales, third-party service gross sales such as warehousing and different gross sales to retailers on its platform.

A lift in income got here from shifting Amazon’s advertising and marketing occasion Prime Day – normally in July – to October, lengthening the vacation purchasing season.

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