Bezos will take up a new position — he will become Executive Chairman of the Board of Amazon. Yassi will replace him as CEO in the third quarter of 2021.
As Axios editor Dan Primack points out, the new position means that the CEO will have a boss that Bezos never had, so essentially Bezos is still in charge of the company.
“As Chairman, I intend to focus my energy and attention on new products. Andy is well-known internally and has worked at Amazon almost as long as I have. He will be an outstanding leader, and I have full confidence in him.” Bezos in an email to employees.
Bezos added that he will continue to participate in important Amazon projects, but this will also give him more time to focus on the Bezos earth Fund and Amazon Day 1 Fund, the space company Blue Origin and the Washington Post.
Jeff Bezos founded Amazon in 1994 and has led the company ever since. Yassey joined the company in 1997 and has led the cloud division of Amazon Web Services since its inception.
The company announced Bezos ‘ departure along with its earnings report:
- AWS reported revenue growth of 28% in the fourth quarter of 2020. The division now accounts for about 52% of Amazon’s operating profit.
- The fourth quarter of 2020 was the most successful in the company’s history. The company generated $125.56 billion in revenue and broke the $100 billion mark for the first time.
- Amazon’s net sales increased 38% to $386.1 billion, compared to $280.5 billion in 2019.
- The company’s operating profit increased to US $ 22.9 billion, compared to US $14.5 billion in 2019.
- Net income rose to $21.3 billion, compared with net income of $11.6 billion in 2019.
Amazon shares rose about 1% in extended trading on the back of the earnings report and news of a change in management. The company’s stock is up about 4% in 2020 and nearly 70% in the past 12 months, CNBC notes.
Now the company’s capitalization on the Nasdaq reaches almost $1.7 trillion, according to the exchange’s data. Amazon surpassed the $1 trillion mark in September 2018.