Friday, Feb 05, 2021, 16:16 Economy

Amazon CEO Jeff Bezos Hands The Crown To Andy Jassy

Amazon founder, the 57-year-old Jeff Bezos, has announced his abdication. However, he won't be leaving the shipping giant and should be taking over another role with influence at the company.

Bezos Moving To Board Of Directors
Jeff Bezos referred to the exceptional past quarter as the perfect time to announce the change of leadership at Amazon. Bezos announced that it was the right time for the change in an email to employees stating, "I don’t know of another company with an invention track record as good as Amazon’s, and I believe we are at our most inventive right now." According to Bezos, consistent invention is the key to Amazon's success. Amazon has proven itself innovative with customer reviews, 1-click shopping, personalized product recommendations, 1-day shipping, 3rd party dealer integration, E-Books, Alexa and the Amazon Echo, cloud computing, and much more.

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Bezos will remain at the company on the board of directors but is stepping back in order to have more time for his other projects (The Washington Post, The Day 1 Fund, The Bezos Earth Fund, Blue Origin, and his "other passions"). In his new role, he'll have influence over focus and strategy at the company.

Head Of Amazon Web Services To Take Over
Bezos expressed trust in his successor with the following statement, "Andy is well known inside the company and has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence." Jassy received his Masters of Business Administration from Harvard Business, becoming an employee of Amazon in 1997. At the time, Amazon was still no more than an online book-merchant but still managed to bring in an impressive US$15 million – per year. Jassy was behind the expansion of the company into other fields, including the sale of sound carriers (e.g., CD, etc.). By the beginning of the 2000s, Jassy had become Bezos' technical assistant, earning increasing influence at the company. The addition of Amazon's extremely lucrative cloud-based "Amazon Web Services" would later become his primary focus at the company, with Amazon now considered the largest provider of cloud services.

Amazon Reports A Record Quarter
The company reported the change of leadership with the most recent quarterly figures. The talk is of a "CEO Transition" in the 3rd quarter of this year, sometime between July and September.

The surprising announcement follows the announcement of last quarter's record figures. Between October and December 2020, Amazon witnessed US$125.56 billion in sales (+44%). The company hadn't ever previously broken the 100 billion mark. The net profit of US$7.2 billion is also double that of the previous year. The coronavirus and the consequences it's had on local economies are certainly important factors to consider in Amazon's recent international success.

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