Amazon's Jeff Bezos Steps Down as CEO After 27 Years

"Focusing on Other Areas"... Retaining the Chairman Position
Surprising Quarterly Sales Exceeding 100 Billion Won Announced

[Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] Jeff Bezos, Chairman and CEO of Amazon, announced that he will step down from his CEO position in the third quarter of this year, according to reports by The Wall Street Journal (WSJ) and others on the 2nd (local time). This marks 27 years since he founded Amazon. On the same day, Amazon announced that its annual revenue exceeded $100 billion for the first time in history.

At the event where Bezos disclosed the fourth-quarter earnings, he stated that he will step down as CEO starting from the third quarter and will serve as Chairman and Chair of the Board. Bezos’s successor will be Andy Jassy, CEO of Amazon Web Services (AWS).

Jassy joined Amazon in 1997, three years after its founding, and conceived the AWS business in 2003, leading it for 18 years. AWS is Amazon’s core business, generating more than half of its revenue; as of the fourth quarter last year, 52% of Amazon’s revenue came from AWS. He was promoted to AWS CEO in 2016.

Bezos said, "I believe now is the optimal time for a CEO transition as Amazon is showing its most creative and innovative side," and added, "Jassy has been with Amazon for a long time, and I believe he will be an excellent leader."

Bezos founded Amazon in 1994 as an online bookstore and transformed it into a major e-commerce company. During his 27 years of leadership, Amazon’s market capitalization surpassed $1 trillion in January last year and, as of the previous day’s close, stood at $1.696 trillion, approaching $2 trillion.

According to the U.S. economic media CNBC, Bezos is expected to focus on other areas such as Blue Origin and The Washington Post, aside from Amazon.

In an earlier email to employees, he stated, "I will continue to be involved in company management as Chairman of the Board, but I want to focus more of my energy and attention on new projects." He added, "I am more energetic than ever and am not retiring."

Bezos is leading the development of rockets and spacecraft through Blue Origin and has focused on digital transformation by acquiring The Washington Post in 2014, which was struggling financially, to strengthen its online content.

This announcement came alongside the disclosure of record quarterly revenue exceeding $100 billion for the first time. Amazon achieved quarterly revenue of $100 billion for the first time in the fourth quarter last year, a growth driven by the rapid expansion of the non-face-to-face market amid the COVID-19 pandemic.

In the fourth quarter last year, Amazon’s revenue and operating profit increased by 44% and 77% year-over-year, reaching $125.6 billion and $6.9 billion, respectively. The annual revenue for last year was $386.1 billion, with operating profit of $22.9 billion.

This content was produced with the assistance of AI translation services.