Jeff Bezos to step down as Amazon CEO
What's the story
Jeff Bezos, who founded Amazon nearly three decades ago in his garage, will be stepping down from the post of CEO in the third quarter, the company announced on Tuesday. The 57-year-old would take on the role of executive chairman, making way for his successor Andy Jassy, who has been with the company since 1997 and currently heads Amazon Web Services (AWS).
Letter
Being CEO is a huge responsibility: Bezos told employees
In a letter to employees, Bezos said the CEO post left him with little time to focus on other things. "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, (sic)" he wrote.
Journey
He took pride in what Amazon has achieved
Reminiscing his illustrious journey, Bezos said initially he was pestered with questions like "What's the internet?" "Blessedly, I haven't had to explain that in a long while," he wrote, adding that Amazon now employs 1.3 million people, serves hundreds of millions of customers and businesses, and is seen as one of the most successful companies. All of this because Amazon kept inventing, he underlined.
Details
He praised his 'smartest, most talented' teammates
Two major initiatives of Amazon — $15 minimum wage and the Climate Pledge — were also highlighted in the letter. "In both cases, we staked out leadership positions and then asked others to come along with us. In both cases, it's working," wrote Bezos. He also praised his "smartest, most talented, most ingenious teammates," and appreciated them for sticking through thick and thin.
Statement
'I have never had more energy'
About Jassy, Bezos wrote he is well-known. "He has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence," the outgoing CEO said. Expressing excitement for the transition, Bezos added, "I've never had more energy, and this isn't about retiring. I'm super passionate about the impact I think these organizations can have."
Revenue
Amazon reported its first $100 billion quarter
The shake-up in leadership came with the news of Amazon delivering its biggest quarter, in terms of revenue. The company went past the significant $100 billion-mark to post sales of $125.56 billion. Notably, Jassy-headed AWS reported a 28% growth in revenue in the fourth quarter. Buoyed by the earnings report, Amazon's shares went up by nearly 1% in extended trading.
Consultations
Board was consulted about this decision: CFO Brian Olsavsky
Although Bezos kept his succession plans secret, experts saw either Jassy or Jeff Wilke, the chief of Amazon's worldwide consumer business, as the next CEO. In August, Amazon announced Wilke would resign in 2021. On the change in leadership, Chief Financial Officer Brian Olsavsky said the board was consulted. He asserted that Bezos will still have his fingerprints on different parts of the company.
Successor
Jassy would be required to steer Amazon through antitrust issues
Jassy, who has an MBA degree from Harvard Business School, would be taking over Amazon at a time when scrutiny from antitrust enforcers in the United States has increased. In October, the House Judiciary subcommittee on antitrust concluded that companies like Amazon, Facebook, Google, and Apple, enjoyed a monopoly. Regulators of the European Union have also brought antitrust charges against Amazon.