Amazon founder Jeff Bezos mentioned Tuesday he would stand apart later this year as chief govt of the corporate he constructed from a startup into one of many world’s Most worthy companies.
The world’s richest individual based mostly on his Amazon stake, Bezos mentioned he’ll transition to the function of govt chair within the third quarter, handing over the CEO function to Andy Jassy, who heads Amazon Internet Companies.
The news got here as Amazon reported a blowout vacation quarter with income greater than doubling to $7.2 billion and income leaping 44 p.c to $125.6 billion — as pandemic lockdowns induced on-line gross sales to blow up across the globe.
In a letter to Amazon workers, Bezos mentioned he would “keep engaged in necessary Amazon initiatives” but would pivot in direction of philanthropic initiatives, together with his Day One Fund and Bezos Earth Fund, and different enterprise ventures in house exploration and journalism.
“I’ve by no means had extra power, and this is not about retiring,” Bezos wrote.
“I am tremendous passionate concerning the impression I feel these organizations can have.”
Bezos, 57, based Amazon in his storage in 1994 and went on to develop it right into a colossus that dominates on-line retail, with operations in streaming music and tv, groceries, cloud computing, robotics, synthetic intelligence and extra.
His different companies embrace The Washington Put up newspaper and the non-public house agency Blue Origin.
His successor Jassy joined Amazon as a advertising and marketing supervisor in 1997 and in 2003 based AWS, the cloud companies division of the corporate which has been probably the most worthwhile but least-known models of the tech big.
“Andy is well-known inside the corporate and has been at Amazon nearly so long as I’ve,” Bezos mentioned in a press release. “He will likely be an excellent chief, and he has my full confidence.”
“Proper now I see Amazon at its most creative ever, making it an optimum time for this transition,” he mentioned.
Bezos’s tenure at Amazon has been marked by a shocking success over the previous few years that has seen an enormous enlargement globally and surges in profitability.
The corporate based mostly in Seattle, Washington, and is growing a second headquarters exterior the US capital.
Amazon’s market worth was some $1.69 trillion as of Tuesday, a tenfold improve from a decade in the past, making it one of many world’s Most worthy.
Bezos’s stake provides him a private fortune price an estimated $196 billion, barely greater than Elon Musk who had briefly captured the title of world’s wealthiest individual.
Amazon has confronted criticism over office situations at its in depth warehouse operations but has additionally led different companies by guaranteeing a minimal $15 per hour wage and has invested billions in Covid-19 mitigation.
The corporate employs a couple of million individuals worldwide together with 800,000 in america.
The transition comes with Amazon and different massive tech companies below heightened scrutiny from antitrust enforcers in america and elsewhere for his or her dominance of key financial sectors, which has turn into much more pronounced in the course of the Covid-19 pandemic.
Whereas Amazon has turn into the main drive in on-line commerce, Bezos has brushed apart criticism over its dominance of the sector.
He advised a congressional listening to final year that Amazon accounts for lower than 4 p.c of retail spending in america and has a “vary of retail rivals.”
The most recent quarterly outcomes confirmed progress throughout all enterprise segments together with its cloud computing as Amazon has expanded its streaming media choices and grocery operations.
Neil Saunders of the analysis agency GlobalData mentioned Amazon has boosted gross sales in the course of the pandemic “off the again of its superior logistics community,” but additionally faces rising competitors.
“Trying forward, we preserve our view that Amazon will emerge from the pandemic as an even bigger and stronger enterprise,” Saunders mentioned.
“We welcome the management change, if solely as a result of it’s going to enable Jeff Bezos to focus extra on innovation and new concepts, which can present the gasoline to energy the engine of future progress.”
(Aside from the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)