Amazon chief executive Jeff Bezos will step aside later this year to become executive chairman, making way for Andy Jassy, who currently heads up its cloud computing division, AWS, to replace him in the role.
The Amazon founder (57) said on Tuesday that it was an “optimal time” to make the move.
Mr Bezos has been chief executive of Amazon since its founding in 1994, during which time he became one of the world’s wealthiest people, with a net worth today of almost $200 billion, according to Forbes.
The announcement comes as the company posted record quarterly revenues of $125.6 billion, up more than 40 per cent on the same period last year, and comfortably beating Wall Street’s expectations.
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Wall Street had expected quarterly revenue of $119.7 billion, according to FactSet. Operating income for the period was $6.9 billion, well above Amazon’s prior guidance and analyst consensus.
The company had expected between $1 billion-$4.5 billion in quarterly operating income, the wide range attributed to continued uncertainty over the costs of managing the coronavirus pandemic.
“When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention,” Mr Bezos said. “Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”
Mr Bezos, who started the company 27 years ago as an internet bookseller, said in a note to employees posted on Amazon’s website: “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.”
He added: “I’ve never had more energy, and this isn’t about retiring.”
Since the start of the coronavirus outbreak, consumers have turned increasingly to Amazon for delivery of supplies.
Mr Jassy’s Amazon Web Services (AWS), traditionally a bright spot, fell slightly short of expectations. While the cloud computing division announced deals in the quarter with ViacomCBS , the BMW Group and others, it posted revenue of $12.7 billion, short of the $12.8 billion analysts had estimated. – Copyright The Financial Times Limited 2021 / Reuters
